Meet The "Access To Affordable Mortgages" Act: How Congress Will Create The Next Crisis

Meet The "Access To Affordable Mortgages" Act: How Congress Will Create The Next Crisis | Zero Hedge
Say hello to the next financial crisis, brought to you courtesy of the dumbest new bill of the week: H.R. 5148: Access to Affordable Mortgages Act.
Ordinarily whenever an individual wants to borrow money for a mortgage, the bank conducts due diligence... both on the borrower as well as the property.
It’s in the banks’ interest (as well as the banks’ depositors) to ensure that the property is at least worth as much as the amount being borrowed.
Duh.
Congress doesn’t agree.
Apparently when banks conduct property appraisals, that seems to unfairly discriminate against some segment of the population trying to buy crap properties.
And we certainly can’t have that going on in the Land of the Free.
So with HR 5148, Congress aims to exempt certain ‘higher-risk mortgages’ from property appraisal requirements.
.....So now they’re trying to engineer yet another financial crisis by encouraging banks and other lenders to exercise minimal due diligence on their mortgage portfolio.
.....So what does Congress do? They propose a new law to screw up bank balance sheets all over again.
It’s idiocy on an epic scale... and it makes one wonder what team of monkeys is coming up with these ideas.