Are government regulated “vanilla” home loan packages the new standard? Builder Online explains.
WASHINGTON – If President Barack Obama gets his way, consumers who take out mortgages would automatically get a “plain vanilla” loan – such as a traditional 30-year fixed-rate mortgage – unless they opted for a riskier variety.
Obama’s plan to revamp financial regulation aims to protect borrowers from the confusing and high-risk mortgages that fed a pandemic of delinquencies and foreclosures, led to the worst financial crisis in decades and thrust the nation into a deep recession.