Wednesday, May 20, 2015

Elizabeth Warren's letter of the law

Elizabeth Warren apparently has a $1.4 million home equity line from Bank of America, which she chose not to disclose. The reason for this choice seems oddly, or perhaps appropriately, technical, coming as it does from banking's most notorious foe in the United States Senate.

Here’s how the Democrat’s office explained the situation to the Boston Herald: “An aide for Warren said the amount represents a home equity line of credit, not a mortgage. According to the aide, a line of credit does not trigger reporting requirements if the borrower has not borrowed on it, or if the amount owed is less than $10,000. Warren’s account had a zero balance, the aide said.”
Allowing for all of that to be true, Warren has nevertheless sought and obtained a commitment to lend from one of the too-big-to-fail banks, secured by a mortgage and no doubt documented by a note, which definitely makes it a "mortgage" even if it is also a line of credit. So at a minimum we know that Warren's "office" cannot clearly explain a relevant difference other than that there is nothing yet borrowed under the line.

At least we know that Warren will be sympathetic when banks raise literal or technical compliance as a defense to claims they violated the law. Oh, and we also know she lives in a really nice house, because she would never do something like ask a bank to give her a mortgage loan at too large a percentage of market value. Or something.

1 comment:

JB said...

"If it weren't for double standards, Democrats would have no standards at all!"
- Chris Plante

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