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Over at Rain City Guide Jillayne Schlicke penned a series on the subprime industry problems. In her latest in the series she discusses the need for industry self-regulation via ethical lending associations or professional association in order to better serve consumers and correct some of the severe problems we as an industry have.
I oppose ethical lending associations for many reasons, but primarily due to the following:
(1) they themselves are not regulated (2) they all set their own standards, and they all vary (3) this provides inconsistencies which make it easy for consumer confusion in the marketplace (4) this confusion ruins the effectiveness of such affiliations (5) it is easy for lender’s to "look ethical" on a handful of files and in practice be out of compliance (6) many of the criteria for membership are not related to actual ethics or service delivery, such as time in business.
And I said a lot more in response to her post. It’s a great debate with lots of contributors. Wander on over and get involved.
Last 3 posts by Morgan
- Subprime Bananas - June 28th, 2009
- Roubini: No confidence in government exit strategy - June 24th, 2009
- Goldman bonuses largest in firm's 140-year history - June 21st, 2009
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