I was reviewing an article on Mortgage News Daily and was shocked to read that lawmakers are planning to legislate that “mortgage companies show that its customers can realistically afford the mortgages they are offered.” WHAT???

Isn’t part of the requirement for lending NOW? Isn’t this part of the job description? We need new laws for THAT? This can and should be done every single time, without exception!

As a mortgage loan officer, I agree that there was and still is a lot of abuse and greed going on from all sides of the mortgage industry problems that we are facing now. It is unfortunate that the 100% Stated Income loans, among others, were available to so many borrowers. It is unacceptable that many loan officers didn't take the time to walk their clients through what would or could happen with the mortgage in future years. In fact, many loan officers weren’t aware of what would or could happen with the various adjustable rate loans that they placed borrowers in as they did not review the disclosures sent out regarding those loans.

There were many loans made under these circumstances and we are facing the consequences of that now.

That being said: Rather that looking for someone to blame, I hope that the education standards for loan officers and borrowers will be increased. To actually have to legislate that a loan officer reviews whether or not the loan product being offered will work for the borrower in the long run is appalling.

It is far too easy to become a loan officer or to obtain a real estate license. I believe that it should require much more education than it does now. The lack of education and the risk to a family’s future is just too important not to require it. If more regulation will offer consumers a protection that I always thought they had; then let's do it!