Slideshow

'Stop sugar coating the reverse mortgage': Comments of the Week

July 25, 2019 9:45 PM

Readers react to BofA defending reverse mortgage borrowers, support the Federal Reserve creating a real-time payments system, advocate for consolidating federal bank agencies and more.

Buildings are reflected in the window of a Bank of America Corp. branch in Alameda, California, U.S., on Monday, April 9, 2018. Bank of America Corp. is scheduled to release earnings figures on April 16. Photographer: Michael Short/Bloomberg

Michael Short/Bloomberg

On Bank of America siding with elderly reverse mortgage borrowers tied to Ditech's bankruptcy:

"The greatest generation knows their house isn't an ATM . . . There isn't a spoonful of sugar large enough to make that medicine go down so stop sugar coating the reverse mortgage situation."

Related: BofA sides with elderly borrowers in Ditech bankruptcy

The Marriner S. Eccles Federal Reserve building stands in Washington, D.C., U.S., on Monday, April 8, 2019. The Federal Reserve Board today is considering new rules governing the oversight of foreign banks. Chairman Jerome Powell said the Fed wants foreign lenders treated similarly to U.S. banks. Photographer: Andrew Harrer/Bloomberg

Andrew Harrer/Bloomberg

On the big-bank opposition to the Federal Reserve potentially building its own real-time payments system:

"The path to real-time payments for community banks requires the Fed to be an operator, since the large banks have made the ill considered decision to adopt an inferior and relatively insecure solution that actually increases fraud & identity theft!"

Related: What the big banks left out when they slammed Fed over real-time payments

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Another reader responds to the Federal Reserve potentially creating a real-time payments system, against the wishes of megabanks:

"One has to wonder with all the political scrutinizing of would be bank competitors, why the DOJ gave an all clear to 25 big banks to together build a new payment system. Innovation in US financial services will continue to lag the rest of the world so long as banks have the exclusive franchise."

Related: What the big banks left out when they slammed Fed over real-time payments

Joseph Otting, comptroller of the U.S. currency, from right, Randal Quarles, governor of the U.S. Federal Reserve, and Steven Mnuchin, U.S. Treasury secretary, listen during a swear-in ceremony at the U.S. Treasury in Washington, D.C., U.S., on Monday, Nov. 27, 2017. Otting, a former OneWest Bank Group chief executive officer, won Senate approval this month to lead a key U.S. bank regulator, further clearing the way for the Trump administration to roll back Wall Street regulations. Photographer: Andrew Harrer/Bloomberg

Andrew Harrer/Bloomberg

On how the convoluted U.S. federal regulatory system could be streamlined by reducing bank regulators rather than adding a new agency to oversee them all:

"Agreed, the solution is not to add an additional bloated government agency. Additional training and possibly additional staff might be needed but please no more unnecessary government agencies."

Related: Additional regulator won't fix the convoluted regulatory system

On BB&T and SunTrust announcing a $60 billion Community Reinvestment Act pledge to help consumer groups agree with the merger:

"Another reason for CRA modernization . . . $60 billion in community lending isn't enough for some people."

Related: Inside BB&T-SunTrust’s community reinvestment plan

Sen. Elizabeth Warren, D-Mass. and 2020 presidential candidate, speaks during the National Education Association #StrongPublicSchools Presidential Forum in Houston on July 5, 2019.

Senator Elizabeth Warren, a Democrat from Massachusetts and 2020 presidential candidate, speaks during the National Education Association (NEA) #StrongPublicSchools Presidential Forum in Houston, Texas, U.S, on Friday, July 5, 2019. The forum gave the 2020 candidates the opportunity to answer questions from America's educators about the future of public education for our students. Photographer: Sergio Flores/Bloomberg

Sergio Flores/Bloomberg

On Democratic Sen. Elizabeth Warren's sweeping plans to reform banking as part of her 2020 campaign trail:

"I’m guessing that all those commentators fretting about anything that might chill the economy were also saying the same thing in 2005 and 2006 when Warren was warning about predatory mortgage lending. Some folks never learn."

Related: Warren makes play to put banking in 2020 spotlight