Mortgage News

It is not receiving any significant attention, but the new bailout bill passed by Congress and signed into law by President Bush includes provisions for establishing a national licensing program for mortgage brokers. Representatives can now look forward to spending even more time than before studying for and taking exams, as well as meeting requirements for refresher courses. What is not clear is why we should believe this will actually accomplish anything constructive.

I have long held that the current crisis derived from government policies regarding housing and the money supply and then blaming brokers for selling sub-prime mortgages, when that is exactly what Congress mandated that they should do. Now the very same government which created the problem is claiming that they're going to protect America from the "real" culprits...the brokers who sold the mortgages.

Not only is this a case of the pot calling the kettle black, it's actually worse. As the late Harry Browne often said, it's a case of the government breaking Americans legs, then handing them crutches while claiming, "See? Without our help you wouldn't be able to walk!"