We received the following from Michael, who has shared several insights with us in the past. I thought we would share this one with our readers:
On Wednesday, the Senate Committee on Banking, Housing and Urban Affairs had a meeting to discuss Assessing Non-Traditional Mortgages.
There were 11 witnesses. The testimony of all 11 witnesses is worth reading, though many of the witnesses had very similar things to say. I am pointing out one testimony in particular because of the objectivity of the witness. Her name is Kathryn Dick and she is a Deputy Comptroller at the Office of the Comptroller of the Currency. The Comptroller is appointed by the President and the Senate for a five year term — so the Office is in a position to do objective oversight, as they report to no one.
The reason I believe this is so relevant is because in my years following the mortgage “insanity” that exists today, this is the first time I have heard of such a high level person at the federal government level express the magnitude of the "creative mortgage" problem. Could this actually be the beginning of our government realizing “we have a problem”?
As an aside I found printing the document out made it much easier to comprehend. This may be something you might want to save and share.
John and I also found the testimony well worth reading, and highly recommend it.