As gas prices continue their commute to five and six dollars a gallon, Federal budgets are duct taped together and people everywhere are scrimping to make their mortgage payment or saving in hopes for one day having a mortgage payment, we can always count on those in power to be on the cutting edge; with creative, think-tank inspired ideas and unimaginable foresight! Or not.

On Tuesday the Wall Street Journal reported HERE, that the Dodd-Frank financial overhaul law proposes…readers, please take a seat, these are truly ground breaking theories and insights that us common folk will have a hard time understanding and digesting…brace yourself to visualize that the concept of a minimum set of lending standards will set forth such radical ideas as:

Home loans having an “ability to repay” requirement. WHOA! You mean, you want this money back? Blasphemy!

Verification of a borrowers income or assets. Ok, just stop this none-sense right now. You mean the ability to breathe onto a mirror and fog the glass no longer entitles a person to small fortunes worth of capital? I am so glad there are people in positions of power that are watching out for the public with our best interests in mind!

Lenders will have to be forthcoming with information about the loan – such as maximum interest amounts a borrower can expect to pay in the coming years.  So you are telling me that as consumers we might actually care about the terms of what will likely be the most significant contract we ever sign in our lives? This is ground breaking stuff! Hmmm, I always had my doubts about those loan programs that promised a mortgage payment on a HOUSE that was half the amount of the lease payment on my CAR…turns out they weren’t in my best interest after all. Strange.

With such valuable knowledge and expertise guiding the way I feel much more comfortable in my position of American Home Owner / Future Home Purchaser. Like they say, foresight is 20/20…or is that hindsight?

For those interested in what really went down, an interesting account of the details was written by Michael Lewis in his book: The Big Short: Inside the Doomsday Machine. I’ve read quite a few books on the topic and this one is probably my favorite in terms of cracking an incredibly hard nut into a manageable and informative bit sized nugget. Perhaps a more in depth, future book report will be in order regarding this riveting read. In the end, you will realize that the legislation discussed above really is thought provoking when you consider the source. Scary.