Jay Leno does a series of jokes in his monologues with the premise that “I don’t think President Bush gets it…” and then goes on to crack wise on some verbal misunderstanding. But, more and more it seems clear that the current administration really doesn’t get a lot of things.
Like this news item, in an article in the Wall Street Journal written by James Hagerty, which covers the Department of Housing and Urban Development (HUD) introducing new forms and procedures to be followed at settlement “because ‘many people made uninformed decisions’ in taking out loans.’”
While I will agree that is the basis of many of our current mortgage related problems, putting the new “solution” to the problem at the settlement table shows a complete lack of understanding of the process. HUD needs to be more proactive and regulatory about the way the loan officers and mortgage brokers *sell* the loans on day one. By the time we sit down at the settlement table four or six weeks later, too much money has been invested, too many plans have been set, and the moving vans are waiting at the doors. To think that a buyer is going to be able to stand up and stop the entire process at that point without an enormous disruption and legal proceedings commencing proves that they just don’t get it.
Regulation has its place. And unless HUD is willing to step in and look over the shoulder of the loan officer during the loan application process, the root of the problem is not going to be addressed.
Replacing the old HUD-1 form could be a blessing if the new form is less confusing than the old one, but somehow I’m skeptical that it will be. Like I said, they just don’t get it.
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