A candid look at the Mortgage Debacle

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I came across an interesting read in the Washington Post and I felt I had to share it with you. Kathleen Day writes from the heart and seems very passionate about her topics. When I read this paragraph from her article, I had to read the rest.

The short version of how we got here: Lenders, fat with money made cheap by the federal government, aggressively coaxed millions of borrowers to take out unaffordable mortgages. They lent this money without assessing whether borrowers could repay it. They assumed, in fact, that most wouldn’t be able to and would have to refinance into new, equally unaffordable loans. This process would produce an endless cycle of fees for the lenders — but only if home prices rose, fairy-tale-like, forever.

The last part was what really sold me…yes I believe they thought this fairy-tale would last forever!!! You go girl!!! That’s what I’m saying.

(Ok, Maybe this time you can read the headlines…they are starting to make sense!)

June 4, 2008 · Filed Under Frederick MD Real Estate

Comments

5 Responses to “A candid look at the Mortgage Debacle”

  1. Chris Griffith on June 4th, 2008 7:25 pm

    I second that notion!

  2. Boomer Jack Boardman on June 8th, 2008 3:43 pm

    And yet, and yet, we still have lenders claiming buyers knew what they were getting into, and failed to exercise “personal responsibility.” Certainly some, even many, did overreach, but what of corporate responsibility and ethics? (Oh why do I ask THAT question?)

    Boomer Jack Boardmans last blog post..You’re SARAH COOPER DAMMIT! Happy Birthday!

  3. gotbob on June 9th, 2008 12:37 pm

    Yeah…why? ;)

  4. Eric- New Orleans Condos and Lofts on June 9th, 2008 11:30 pm

    Plenty of blame to go around. Its a commentary on our society. Then the FEDs bail out the banks by printing money. Where were the people whose job it was to fight corruption and putting some water on the fire. Hello Big Banks!

    Eric- New Orleans Condos and Loftss last blog post..New Orleans Condo Rentals-Demand is high for Uptown and the Warehouse District. Buyers window Shopping?

  5. Ann Cummings on June 10th, 2008 5:20 am

    “the endless cycle of fees for lenders”…
    You’re right about that last sentence getting to the gut of some of the ’sign here if you can breathe’ loans.

    Ann Cummingss last blog post..Portsmouth NH Real Estate - 210 Locke Road Rye NH Home For Sale

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