It is a red-letter day when Congress is able to fight off the special interests, put aside partisanship and actually address a serious economic problem. That’s what the House of Representatives did last week with passage of a bill reforming the mortgage lending industry.
The bill sets national standards, outlaws fraudulent and abusive practices, and requires investment bankers to exercise a minimum duty of care in packaging and securitizing mortgage loans. The lion’s share of the credit goes to the chairman of the House Financial Services Committee, Rep. Barney Frank of Massachusetts, whose focus, knowledge and knack for dealmaking make him a rarity in the House these days. The Washington Post 11-18-07 By Steven Pearlstein