The responsible lending act – the name sounds great doesn’t it. How about “Your Credit Counts” – another good sounding idea. The truth is “your credit counts” was designed by predatory lender Household International. The “responsible lending act” was an initiative by Congressman Paul Kanjorski and Republican Bob Ney of Ohio. Bob Ney was sent to prison for 30 months. Nothing is as it appears in this unprecedented time for the housing market and the mortgage industry.

“During the last four years, we have unfortunately learned about how unfair and deceptive practices have directly and profoundly affected hundreds, if not thousands, of homeowners…,” said Congressman Kanjorski. Congressman Paul E. Kanjorski (D-PA), the most senior Democrat on the House Financial Services Capital Markets Subcommittee in 2005 introduced the comprehensive bipartisan bill called the “responsible lending act.” The truth is only one nationwide predatory lending settlement took place since then. The truth is it was not driven by the federal government, but rather by state attorney’s general. The truth is that lawmakers and private citizens knew, understood, and spoke out about potential problems. Lobbyists were so strong that nothing stopped the train wreck, but lobbyists are the reason Bob Ney went to prison in the first place.

As we said in the opening, nothing is really the ways it looks or appears.