Dodd Bill Leaves Loopholes
Outrageous Misconduct? Just Plain Fraud.
Why it matters: Fannie Mae has estimated that up to half of subprime borrowers could have qualified for prime mortgages, but many were sold higher-interest loans by unscrupulous mortgage brokers looking for higher commissions. But many regulatory agencies have put consumer protection on the back burner — or have seen it as a threat to banks’ financial health. The Office of the Comptroller of the Currency, for instance, went to court to stop state regulators from investigating allegations of abuse at the national banks it oversees.