The Bandwagon Just Got Fangs
After the General Assembly last week introduced legislation to prevent another sub-prime mortgage crisis in Missouri, the Kansas City Business Journal is reporting that Gov. Matt Blunt has introduced proposals to strengthen said bill, which would include creating the crime of "Mortgage Fraud," a class-C felony.
Wow, that escalated quickly.
Now, I really have no problem with the establishment of criminal statutes for the prevention of obviously criminal activity. What I have a problem with is this (emphasis added):
"A trade group for bankers has said that most of the state’s regulated
financial institutions such as neighborhood banks and credit unions ?
aren’t deeply involved in sub-prime loans. But the leader of a trade
group for mortgage bankers warned that going too far with penalties on
lenders could make it more difficult to get credit in Missouri."
Ignoring the obvious criticism of a mortgage banker protesting actions targeted specifically against members of his industry, do we really think that a state response to a national credit crisis is going to be the biggest threat against the financial security of Missourians?
Heck, I’d probably be more worried about this guy.