U.S. mortgage brokers fight back against proposals (National Post, 10 Apr 2008, Page P14)

I saw this article in today's National Post (it's probably in other papers as well, but that's the paper I have electronic access to). While I agree that there were cases of people getting the wrong mortgages, there is no indication in the article that there is a reason for the increased "yield-spread premiums."

People with 'bruised' credit are harder to place, and the lenders offer a higher finder's fee to the broker for placing these clients. An unintended consequence of such a change, I would think, is that it would be harder to get credit for these people. Shouldn't we be encouraging people to build home equity and re-establish their credit. (In Canada, anyway, people in this predicament would be required to put some of their own money down.)

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U.S. mortgage brokers fight back against proposals
BY RUTH MANTELL Dow Jones
National Post
10 Apr 2008

NEW YORK • Plenty of parties share blame for the housing crisis, but one of the most maligned groups has been mortgage brokers, who critics claim pushed thousands of homeowners into expensive mortgages they should have never been given. New rules from...read more...

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