How to avoid a housing bubble, state regulation edition

April 21, 2009

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.


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