Subprime loans have been in the news quite a bit lately, but not for the same reasons they were in the media a couple years ago.
Defaults and Foreclosures are climbing rapidly across the country. Unfortunately, a good number of the population who "qualified" for these loans should not have been given the opportunity to hang themselves. I firmly place the blame for this looming crisis on the mortgage industry and their creative efforts to create several new loan types that are simply ridiculous. I like the Implode-a-meter. It represents how out of control the mortgage lending institution has become. Fortunately, we live in a country where capitalism has a way of correcting itself by weeding out these idiots that suck people into something that only, ultimately, sets others up for failure.
A few quotes from regulators and critics of subprime lenders...
"subprime borrowers may not fully understand the risks" -- originator times
"Borrowers with bad credit are going to find it harder to get a home loan or refinance" -- credit.com
"Some have viewed the burgeoning subprime mortgage market as just such a ticking timebomb" -- costar group
"We're looking at subprime" -- SEC enforcement director Linda Thomsen
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