Fed to bar shady home loans

That is good in itself, but barring shady home loans won't bar uneducated people from trying to get loans or from pulling out all of their home equity to spend it on trips, or frivolous purchases, or paying off credit card balances and then charging up the cards again. Shady loans are only a part of the current mortgage mess. Many people are just plain idiots when it comes to handling finances. Lack of financial education in school is the number one failure of the k-12 system. Sure everyone knows who George Washington is, but no one can balance a checkbook, or calculate simple interest, or even judge the risk factor of an adjustable rate loan that will reset in 3 years.