To: President Donald Trump, The United States House of Representatives, and The United States Senate
Credit for Responsible Borrowers
Investigate widespread bank practices that deny responsible borrowers mortgage refinancing. People who aren't under water or in foreclosure deserve a level playing field.
Why is this important?
"The banks are not lending" is true for millions of Americans who have always paid their bills, have earned high credit scores, and share a long history of responsible borrowing. Those who have sought to refinance a home loan are often mired in paperwork, delay, and unintelligible formulas used by underwriting to deny refinancing.
The banks and other Wall Street entities are said to be sitting on trillions in cash, that they fear the effects of Dodd Frank, and/or they are practicing caution. Their "caution" would have been welcome long before the crash and is not credible now.
If the government can push the financial giants to help people whose loans are "under water" or who bought more than they could afford, it should certainly investigate and CHANGE bank practices that deny refinancing at today's low rates to responsible borrowers.