For many years I wrote software for mortgage bankers. I firmly believe that the time for regulation is long overdue. Unfortunately there are too many unscrupulous mortgage bankers who will say and do anything to close a loan. I'll give you a specific example. A few years ago I contact the bank that held the loan on my home because I was looking to refi. I knew, because I was knowledgeable about mortgage lending, that I wanted a 30 year fixed rate loan. The potential loan officer told me that 1) they only offered ARM loans and 2) that interest rates wouldn't go up. The mortgage industry has many complicated loan types and lending practices. I doubt the average consumer fully understands negative amortization or what a GPM loan is.
So, in conclusion, I'm a little dismayed at your attitude about those many people who are losing their homes because they listened to loan officers and ended up in loans that are now blowing up in their faces. Many of these people are hard working people who's only fault was trusting a lender.
Sara
"I never give them hell. I just tell the truth and they think it's hell." - Harry Truman