Quote:
Originally Posted by kevman
Quoted for Truth!
I love how the media, at times, tries to play the citizens as the victims while their brand new truck is being repo'd... I don't feel sorry for anyone that was living outside of their own means when they default on their loans!
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Yep, there was a lot of stupidity involved by US consumers no doubt but at the same time the lenders have to take responsibility for their greed. It all went against conventional risk assessment. In fact there doesn't seem to have been any at all, and if so it was ignored.
Money shouldn't have been made available to them. Who the hell buys a house at 36 months interest free and 15% thereafter?
A combination of extreme greed and extreme naivety/stupidity.
A few quotes from a very interesting read into what was going on.
http://www.responsiblelending.org/pd...went_wrong.pdf
"I would reject a loan and the insanity would begin," Audrey Streater, a former underwriter and underwriting team leader for IndyMac in New Jersey, said in an interview with CRL. "It would go to upper management and the next thing you know it’s going to closing. . . . I’m like, ‘What the Sam Hill? There’s nothing in there to support this loan.’
"Her lawsuit claims IndyMac purposely structured the deal so it was ignorant of her financial means and ignored clear evidence that something was amiss with the information submitted for her application. IndyMac specifically instructed the broker to send copies of her Social Security award letters with the dollar amounts blacked out. In other words, the lender wanted proof that she was receiving Social Security but didn’t want to know how much.
Her IndyMac loan file is full of inaccurate and contradictory information. One document indicated she was getting $1,100 a month in retirement income. Another said she was employed and earning $2,100 a month. Another pegged her income at $3,200 a month. Similarly, IndyMac paperwork and computer files show her assets growing from zero to $2,100 to more than $20,000 – all in the matter of 10 days.."