Blame flies for high-risk mortgage meltdown

So what are they going to do? The only option that the Regulators can resort to...is to change the agreements that these borrowers had with their present lenders and allow them to modify the agreement to get their rates down to where they were when they started...At that point look for the lenders and their attorneys to raise a BIG STINK!

There is no way we should subsidize people who can't afford to pay their mortgage. They will have to lose it if it happens that way and rent until they rebuild. Having said that, it is ridiculous that the banks gave away money that freely which, yeah fueled a ridiculous speculative wave that made all of our lives more expensive to deal with. Still, the turkeys who overbought - your problem. No bailout.

These stupid bastards that was supposed to protect the people from the fiasco as a result of lending practices and line the pockets of developers and real estate people should be shot. it was a joke from the beginning.

When is anyone EVER going to take responsibility for their own actions? I just dont get it. The blame lies on the borrower... Im so sick of people making bad deals then blaming someone else and looking for a bailout. Its a friggin joke.

Great Message from the congressional socialists.
Take out a ARM, LIBOR floater, or Neg Equity loan floater with bad paper(poor credit)- make POOR financial decisions, use the house as a credit card and get that 2nd, 3rd, 4th home equity loan to pay off the credit card bills - then rack up the credit cards again and again.
Which puts you in the SUBprime HIGH RISK market ---for dam good reason --- your FICO is lower than your IQ.
Then expect all the OTHER American people that made better decisions and choices --to bail you out with their tax money just after you drove up their property taxes by driving up the price of homes.

Please. People are being wedged into something they cannot really afford and then when the ARM swings into action they got squeezed. The real story is when 30 year fixed mortgage folks start missing payments.

remember 3 or 4 years ago when the Feds were all riled up because lending instituions were refusing loans to HIGH risk applicants - or charging HIGHER rates, or requiring HIGHER down payments.

It was characterized as 'racist'- and the banks were attacked for denying people the 'American Dream" - cause they had poor credit.

Remember the Georgia and New York 'Anti-predator" laws that made it illegal to charge higher interest to higher risks? That shut down mortgage underwriting for a brief period - because it destroyed the linkage between interest charged and credit risk to the bank.

The Banks got the message ---give a loan to any sucker with a pulse ---just make it a back end deal.

So the feds loosened the rules, Moody's found a way to rate Subprimes for selling in the secondary market --and all the clever loans were created so that my cat could have qualified.

And the banks avoided political accusations of 'discrimination" for trying to avoid making high risk loans to people that could not afford them then or on the backend.

Bush caused it all With the Fake MONEY,Low Intrest Rates caused the WHOLE upcoming CRASH,DEPRESSION Thats Just around the Corner.....

RIDE WITH ME wrote:

TOO LATE FOR FLA, THE MORTGAGE BOOM WAS BEFORE THE LORI PARRISH INSPIRED HIGHER TAXES AND THE DOUBLING OF INSURANCE RATES. ALL OF THE INTEREST PARASITE LOANS ARE UP. GOT A TIP FOR THE 43 PERCENT WHO ARE SELLING IN BROWARD: IT IS NOW A BUYERS MARKET. WAKE UP. LOWER YOUR PRICES OR THE BANKS WILL SET THE PRICES FOR YOU, ONCE THEY FLOOD THE MARKET WITH FORECLOSURES.

Yes I agree with you,There will be a Drop in prices from 40-60 % In Values in the Next 18 Months when this Hits..........

It amazes me how people seem to always look for someone else to blame. This article blames the financial community for loaning money. Where is the responsibility of those who borrowed it?
There are articles everyday in the press pleading with people to be fically responsible with their money. Telling them how to manage their money.
It is time we stop looking for the government to manage our behavior and start managing our own behavior.

Vince wrote:

<quoted text>
I would make a big stink myself. People who took out risky loans to buy houses they can't afford and drove up prices for everyone else deserve what happens to them.

EXACTLY !

I think I'll go to the Seminole casino today, take a cash advance on my credit cards, and put $10,000 on 13 red.

Hell, if I don't win, I'll just get a lawyer and sue the casino or the government !

NO TAXPAYER BAILOUTS THIS TIME !

I'm surprised Realtors aren't being blamed for this too!

Lets see. I bought a house with no money down, a 1 % interest rate, and unreal low monthly payments. I did not pay the taxes or insurance for several years, AND didn't make payments for six months.

So the bank forcloses. What am I losing???? I have no equity even if the property values had not tanked. The bank is the loser. I just have to rent again.

Why not worry about the prime borrower who has to move and now will lose that 20% down payment.

there is even bigger stuff aorund the corner, homes are bought by 'specutators' with interest only loan payments under the names of poor credit individuals for 1/3 over closing, the 'speculators' pocket the money, the poor credit person shrugs their shoulders when the interest only term ends, the house goes into foreclosure, and your investment tanks as all the homes around you list for pennies of the assesed value

The blame can go all around. Greenspan was very vocal in pushing these exotic loans and the Mortgage bankers and realtors cashed in. The people that borrowed on these loans should have been more responsible also. I remember when me and my wife was looking for a home and went to a open house the realtor was telling everyone that came if you are not pre-qualified you should get a 80/20 and he would tell them why they should get it. The realtor could not tell me anything about the house (gas,city sewer or septic tank, HOA fee's, property taxes) but he could tell me what type of loan to get. Being a appraiser for over 10 yrs getting to know the realtors in the area and Mtg brokers in the area and knowing where they got went to school I learned one thing. Do not take any financial advice from a either.They are not educated enough especially if they got there license within the past 5 yrs.

Energy bubble
Enron Bubble
Dot Com Bubble
Real Estate Bubble
It appears that a few individuals are making BILLIONS off of the backs of the lower classes.
What are a handful of people going to do with billions of bucks?
Something funny is going on I tell ya.