By Jueseppi B.
Editor’s note: This post was originally published on the official blog of the Consumer Financial Protection Bureau
Today, we’re issuing one of our most important rules to date, the Ability-to-Repay rule. It’s designed to assure the reliability of mortgages – making sure that lenders offer mortgages that consumers can actually afford to pay back. This is a simple, obvious principle that needs to be cemented in the housing market.
In the run-up to the financial crisis, we had a housing market that was reckless about lending money. Lenders thought they could make money on a loan even if the consumer could not pay back that loan, either by banking on rising housing prices or by off-loading the mortgage into the secondary market. This encouraged broad indifference to the ability of many consumers to repay loans, which dramatically increased mortgage delinquencies and rates of foreclosures.
Earlier this year, we heard from a California man named Henry, who was in the process of foreclosure. He was desperate. During the overheated years, a lender sold him a mortgage valued at more than half a million dollars. This was far more than he could afford on his annual salary of less than $50,000. He said he’d assumed that the lender knew what it was doing when he qualified for such a large loan. He’s now worried not only about losing his home, but about losing his family’s entire future.
Henry is not alone. Unaffordable loans helped cause the worst financial crisis since the Great Depression. People across the country were sold unsustainable mortgages. Some may have entered with their eyes open, seeking to ride the wave of rising housing prices, but many were led astray. For many borrowers, it appears that lenders ignored the numbers to get the loan approved. This kind of reckless lending was an endemic problem.
To put it simply: lenders should not set up consumers to fail.
Read more at The White House Blog
Who IS Jack Lew?
He’s the newly just appointed Treasury Secretary!!
White Board: OMB Director Jack Lew on the President’s Budget
Uploaded on Feb 11, 2011
In this White House White Board, Jack Lew, Director of the Office of Management and Budget, explains how the President’s Budget will help the government live within its means, while still investing in America’s the future.
Jacob Joseph “Jack” Lew (born August 29, 1955) is an American politician and the 25th and current White House Chief of Staff. Lew previously served as Director of the Office of Management and Budget in the Clinton and Obama Administrations, and is a member of the Democratic Party.
Born in New York City, New York, Lew is a graduate of Harvard College and Georgetown University Law Center. Lew began his career as a legislative assistant to Representative Joe Moakley and as a senior policy adviser to former House Speaker Tip O’Neil. Lew then worked as an attorney in private practice before working as a deputy in Boston’s office of management and budget.
In 1993, he began work for the Clinton Administration as Special Assistant to the President. In 1994 Lew served as Associate Director for Legislative Affairs and Deputy Director of the Office of Management and Budget, where he served a Director of that agency from 1998 to 2001 and from 2010 to 2012. Lew later served as the first Deputy Secretary of State for Management and Resources, from 2009 to 2010.
|25th White House Chief of Staff|
January 27, 2012
|Preceded by||William Daley|
|Director of the Office of Management and Budget|
November 18, 2010 – January 27, 2012
|Preceded by||Jeffrey Zients (Acting)|
|Succeeded by||Jeffrey Zients (Acting)|
May 21, 1998 – January 19, 2001
|Preceded by||Franklin Raines|
|Succeeded by||Mitch Daniels|
|Deputy Secretary of State for Management and Resources|
January 28, 2009 – November 18, 2010
|Preceded by||Position established|
|Succeeded by||Thomas Nides|
|Born||Jacob Joseph Lew
August 29, 1955 (age 57)
New York City, New York, U.S.
|Political party||Democratic Party|
|Alma mater||Carleton College
Georgetown University Law Center
Chief of Staff
On January 9, 2012, President Obama announced that Lew would replace William M. Daley as White House Chief of Staff. Lew’s nomination was followed with criticism after renewed reports that he received over $900,000 in bonuses while working as COO of Citigroup, following the company’s $45 billion in TARP rescue funds, after it saw $27.7 billion in loses, a 90% depletion in value.
During his tenure as Chief of Staff, Lew has been seen as a supporter and top negotiator for a “grand bargain” deal between President Obama and House Speaker John Boehner, to avoid “Fiscal cliff” sequester cuts and tax increases.
Possible nomination for Treasury Secretary
On January 9, 2013, rumors were confirmed by the Associated Press, when President Barack Obama nominated Jack Lew to replace Tim Geithner as the next Secretary of the Treasury. The nomination has been the subject of some humorous commentary, due to Lew’s unusual loopy signature, which, if he is confirmed, will appear on all U.S. paper currency for the duration of his tenure.
Working Together to Prevent Gun Violence:
Right now, Vice President Biden is leading an effort to develop a new set of policies to reduce gun violence and prevent tragedies like the shooting in Newtown, CT. Yesterday, as part of that work, the Vice President met with victims’ groups and gun safety organizations at the White House, including with Annette Nance-Holt, a mother who lost her son to gun violence.
From The Blog Of vegas jessie
“In order to completely disrespect every family who is currently grieving over the loss of a family member, (a child in particular) to gun violence, the Council on Promoting Gun Violence and Exploiting the Dead (my embellishment) has decided, in their infinite paranoia, to declare Saturday, January 19th “Gun Appreciation Day.” to be ironic, these fine folks chose the very weekend we celebrate the birth of a champion of non-violence, MLK.”
These people, who clearly pervert the Second Amendment, must make certain if any crazed, violent loon has the inclination, he or she has access to as much ammunition and high-powered weaponry as they so desire.
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