In a recent statement, president Obama emphasized the importance for a Wall Street reform after the big mess that was brought about by the foreclosure crisis.
“We’ve seen problems in foreclosure proceedings – mistakes that have led to disruptions in the housing markets. This is only one more piece of evidence as to why Wall Street reform is so necessary, ” the president explained.
“This was a bill designed to rein in the secret deals and reckless gambling that nearly brought down the financial system,” he added.
Although the Obama administration stood against the national moratorium on foreclosures claiming that this would do more harm than good, this does not mean they are not actively seeking a way to rescue the real estate market. However, it is hard to know if any of these reforms being considered will actually make a difference in the market. This is something that will only become apparent with time.
“The Obama Administration has a comprehensive review of the situation underway and will respond with the full force of the law where problems are found, ” reports indicate.
Any action directed to the real estate market at this point will lead to major changes. Foreclosures are all around us, and are affecting all of America. At this point in history, foreclosures are becoming a big indicator on the economic situation we are at. In addition, foreclosures have caused political intrigue, and scandals, and that is why even the government needs to get involved when the economy finds itself fighting against the recent foreclosure mess. It is not only that foreclosure have been going on at increasingly higher rates, but we also need to consider the effect that the latest fiasco will have on the growing anxiety already present in the real estate market.
If the presidents reform of Wall Street is anything similar to the reform in the lending industry, then we’re all in for a world of hurt. While certain regulations should be in place, the act of being 100% involved in the industry, as the government has done in the mortgage lending industry, will create utter chaos and add to the difficulty of investing.
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Eric Burgess has written 75 articles on Mr. Mortgage @ Mason McDuffie Mortgage
