Don't overlook the greed factor
| Posted On: 04/22/08 02:21:08 PM |
Age 52, GA |
Many in the mortgage business were making money hand over fist, especially in the refi business, as interest rates declined in the early part of this century. When interest rates reached historic lows, they began looking for other ways to earn those commissions. Thus they began pushing loan products that were marginal, either in credit worthiness, or actual loan to value. MTA's, interest-only, and ARM's were pushed hard to keep up those large commission incomes that were common in the refi heyday. The influx of money now by the Fed to prop up the problem from the top down, is wrong. The effort should be to save as many homeowners as possible that were duped by unscrupulous loan officers, with questionable methods (inflated appraisals or income statements) or questionable loan products as I mentioned previously. You don't try to save a teetering skyscraper from collapse by only reinforcing the upper structure, you get down to the bottom where it really counts. You want to prop up this economy, you don't bailout fat cats on Wall St., and then send out little chump change checks to the folks that are hurting. Bring these ARM's back down to thier teaser rates, and start pumping oil out of our own reserves, including ANWR, then build refineries to get these fuel prices down. No other economic analysis needed... help the folks! Love your neighbor, help your neighbor, and that does not mean the just ones that live on fatcat street with you.
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