The Consumer Financial Protection Bureau recently issued a report showing that nearly half of all borrowers did not comparison shop in connection with obtaining a mortgage. This conclusion somewhat undermines the premise that the financial crisis was wholly caused by unscrupulous lenders. Moreover, many of the regulations, disclosures and other requirements aimed at preventing deception in the marketplace appear to be less impactful given the fact that many would-be homeowners are not interested in comparing their options.
The CFPB’s solution, in large part, appears to be a service called
Those who intentionally choose to remain uninformed despite all of the laws, disclosures, and readily available information are likely the most probable to need and obtain bailout assistance from government programs and other legal protections. Yet, it appears they wholly escape blame for their predicaments and are in the best position to avoid the repercussions of their uninformed decisions. Instead of creating more obstacles and fewer choices for borrowers who have taken the time to make informed decisions, one has to ask whether holding borrowers accountable might very well in the long run produce better results for the industry and nation as a whole.