Emerging Warning Signs Indicating the Urgent Need Emerging Warning Signs Indicating the Urgent Need for Consumer Finance Regulationfor Consumer Finance Regulation

We need serious federal legislation to set up real regulation and oversight of all areas of the lending sector, including loans backed by the "Major Banks" and "Wall Street Investment Banks." There are warning signs of another mortgage loan and other consumer loan bubbles that could cause another financial collapse similar to the mortgage debacle of 2008, when the major banks and investment banks were bailed out by Congress from insane behavior that came very close to starting a national and world depression. After that, no one went to jail and no significant legislation was passed to stop this from happening again. Now there is current additional evidence that loans, including Home Loans, that are again being made so irresponsibly that are doomed to fail at the outset. I have good cause for alarm, in the form of evidence seen through my law practice, that a mortgage loan was made with an adjustable rate that is worse than the kind that fluctuate with a national mortgage loan rate index. This one had two fixed annual rate increases started at 5.5% at the outset, 6.5% starting year 2, and 7.5% from year 3 onward. This kind of thing is unsustainable if done on a widespread basis. Other warning signs that began appearing years ago, witnessed by me are loans made for certain expensive personal property items, where the lender doesn't seem to care about their security, such as Mobile Home loans, purchase money loans for 3 and 4 wheel ATVs (All Terrain Vehicles). The borrower later became unable to pay, but the lender never came out to pick up their collateral. Why would a lender not try to minimizes losses? The only thing I can think of is that these losses are insured by another entity, in such a way that the lender has no motivation to minimize the amount of these bad loan losss. That insurer, or even the original lender, will transfer the right to collect on these bad debts directly, or through a series of transfers to a Wall Street Investment Bank or perhaps a hedge fund, that will bundle these bad loans and sell them as bonds. These are the kind of practices that caused the 2008 mortgage crisis.