Michael Lauderdale's Profile
Michael Lauderdale
Location: Chesterfield, VA
Date Joined: February 24, 2009
Votes: 36
Questions: 1
Questions Answered: 1
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It seems that a simple fix to one of the key causes of the current financial meltdown would be to create regulation or statute that requires mortgage originators to service the loans they originate through the life of the loan. Will you enact such legislation now?
Asked by: Michael Lauderdale from Chesterfield, VA. Received 36 Votes.
Listen to: U.S. Rep. Barney Frank (D-MA)
We clearly need to change things. We need to have much more responsibility on the services. Whether or not the originator has to service it throughout—I don’t think that’s necessary to achieve the goal. It is important that whoever the servicer is have full rights to restructure the mortgage. So I think it’s acceptable to say it can be sold, as long as the originator—the originator should not be able to sell the entire responsibility for the loss—the originator should have to retain some of the risk.
Answered on Jul 16th, 2009 More
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