Mortgage Guide

tuff2bme001 asked:

What are the major “low” lending standards that has caused the “sub prime” mortgages crises?

Question posted courtesy of: Arnold

Duncan w ™ ® asked:

The ‘body-american’ has been infected with many parasitic corporations over the years (Enron comes immediately to mind) and the advent of sub-prime lenders is just the latest chapter in this saga. In biology, a successful parasite allows the host to live so that it might continue to have a food source while an unsuccessful parasite ultimately kills its host, in essence signing its own death sentence.

Sub-prime lenders are not only killing off the host (borrowers) but are poisoning the herd. In what world is it OK for predatory corporations to financially destroy individuals while making huge profits and then, when the house of cards starts to collapse, just walk away leaving the national economy in a mess.

The worst part of this is that the regulators made it all possible by condoning the practice. SHAME!

Why is the financial industry so free to ruin the economy and still get government support in its quest for fewer regulations? Am I missing something?
True about houses but in many cases the markets have suffered sufficient losses so that the value of homes falls far short of the value of mortgages. Sub-prime lenders are now going tits-up and the CEO’s are walking away with millions of dollars.

Question posted courtesy of: Evelyn

davidmichigan24 asked:

Who is the most to blame for the sub-prime mortgage crisis in America? Do you blame the predatary lenders, irresponsible borrowers, bad economy in certain places, or people who borrowed with anticipation that there home would double in 3 -5 years (Phoenix, Las Vegas are two examples)

Question posted courtesy of: Frederick