Mortgage Crisis: Fault the Borrower
Though politicians have worked hard to turn mortgage borrowers into America’s largest new victim class, in fact a good deal of our current financial trouble isn’t a result of predatory lending, according to Terry Jones, associate editor of Investor’s Business Daily. It’s a result of predatory borrowing. BasePoint Analytics, which looked at some 3 million loans from 1997 to 2006, found that as much as 70 percent of early defaults on mortgages involved some kind of fraud by the borrower – whether in overstating income and assets or by gaming the appraisal system. Source: Townhall magazine
That’s just silly. We all know that the entities that offered the mortgages had jettisoned all common sense when handing them out because they were greedy and believed the gravy train would keep on rolling.
Predatory lending is a cornerstone of American finance, whether it is credit cards, mortgages, short term loans, auto loans, 2nd mortgages, rent-to-own schemes and so on.
The government has had laws on the books, and even agencies dedicated to keeping things in check but this administration decided to be completely hands off and let the markets spiral out of control.
Yes blame the poor person for it all, thats believable.
Rick, a mortgage is a contracted agreement; all terms and conditions are “on the table.” Why do you so quickly criticize the lender and give the borrower a pass when they had every opportunity to read and understand what they were getting into? At what point in your world is a man responsible for his own deeds?