Subprime lenders were being the GOOD guys. It's the borrower who shouldn't have taken the money, RIGHT

Answer 1

The subprime people were taking chances on losing their money. There were some bad ones that lied and when they resold the mortgages the next person got screwed. Borrowers should know better. We cannot protect people from themselves. If they tried, then people would complain that the government was too controlling.

Answer 2

Not necessarily. There are a lot of brokers out there who knew what the clients couldn't actually afford the loan, but closed them anyway because the "stated" income made it look to the underwriter that the borrower could pay the loan back. That is why they are called "Liar Loans". If you wanted a house, and someone told you they could get you in by overstating your income and gave you an adjustable rate for the first couple of years that fit your budget, you would probably say "Great" until the rate started to adjust and then you have problems keeping up with the payments, and you go into default and then foreclosure. The blame is really on Brokers and Borrowers alike. Everyone needs to be educated for the long term effects these loans have.

Answer 3

Not ALL subprime lenders are the "good guys" I would love to say they were but it's just the facts. They are the professionals who put people into bad bad BAD loans. Loans that didn't make sense and loans that people couldn't afford. This is WHY our market is doing what it's doing. All these foreclosures, etc. I think it's great though......its gonna weed out the bad and keep the good guy around. =0)

Answer 4

Let me know of a case when a subprime lender had a gun to a borrower's head and forced them to sign a mortgage they couldn't afford. Then I will feel sorry for that borrower.

I agree that subprime lenders are scum though. I wouldn't do business with one. There are a huge number of "conventional" lenders I wouldn't do business with either due to their tricks and double talk.

As far as more regulations, or putting the scum in jail, well, it's not the governments job to protect the citizens from their own stupidity, and I don't see any crimes that have committed. Being scummy isn't illegal.

Answer 5

I'm a firm believer in personal responsibility. Unless someone uses force or deception, any ****-hole you dug yourself into, is your own responsibility.

That may sound harsh, but where does it end? Do I shoulder no responsibility if I commit robbery and then try to put the blame on my mother for not giving me enough hugs?

If I default on my loan, it was because I screwed up. Not because the bank was trying help a guy out to live the American Dream. The bank is the good guy here.

I am so frigging irritated by folks blaming someone else for situations their own actions put them it.

As a wise man once said, come down off your cross, build a bridge from the wood, and GET OVER IT.

Oh. And for those who blame the lender for using phrases such as, "Sign in the next two hours, or the offer expires at midnight.". ... Who the hell forced you to move from your apartment? Who pressed the muzzle of a loaded .45 to your temple and made you live in a house? Are you really trying to get us to believe that you didn't really want to live in a house, that the lender forced you to?

Live in a apartment until you can save 20%, then you'll get the good rates. Stop whining, dammit!!

Answer 6

Absolutely! There are of course some who stooped to predatory lending but for the most part, everyone wanted to make a buck off the real estate wave. There are many lenders that are going to be hit just as hard by the foreclosures not to mention the effect on Wall street......

Answer 7

You're living in a hovel of an inner-city apartment and along comes this "smiling face" that promises you The American Dream. Are you going to be suckered in? I'll bet a month's salary that you will.

Unless you've been in that situation (I have) you can't appreciate the tactics that those slimeballs use. Then they (the lenders) run crying "foul" to the government looking for a handout to bail them out.

Thankfully few of these loans were government-backed so the taxpayers won't be footing the bill for corporate greed this time.

Answer 8

What planet are you talking about?

The borrows were fools, but the sub-prime people knew better. Nothing good about them.

Lisa, I have seen a "forced" sign before. "the loan is only guerenteed until mid-night" "there are two more buyers lined up, if you don't sign today you will not get this house".

This was my BF. SHe is educated, Masters degree, and I thought she trusted me, and I was clear, THEY ARE SCUM, DO NOT SIGN THIS LOAN. Very high pressure and she signed. Now I have to help her out of the mess that I tried very hard to keep her from getting into in the first place.

Answer 9

I wouldn't go as far as to say the lenders were being good, but I do agree that the borrowers should have done their homework...