How to avoid a housing bubble, state regulation edition
Which nanny state:
- Banned its mortgage lenders from imposing prepayment penalties;
- Banned balloon repayments;
- Banned negative amortization mortgages;
- Banned loans based only on collateral value without regard to the borrower’s ability to repay the loan;
- Banned lenders from charging for services the borrower didn’t receive;
–and thereby avoided the worst effects of the housing bubble?
Mike at Rortybomb has the answer, which might surprise you.