That’s the fable. That the low credit score people tricked the bankers and got loans they couldn’t pay.
The reality is that the financial industry fraudulently sold high risk loans to investors as grade A paper. They knew it was fraud because they took out insurance polices against their own product.
Government had a role, but the bankers had a giant role as well.
No, it’s not a fable. If they did have high credit scores and could pay the loans, where did the defaults come from? The loans were resold as high grade paper when the banks knew they were not. There was no “tricking” the banks. They knew full-well what they were doing. Pressure to loan to “marginal” buyers was pushed by Congress (e.g., the threat of Red Lining their loans) and even more so when Obama took office in 2009. The collapse falls squarely on the lenders, especially the S&L’s who played in that game of craps.
How anyone would take issue with this statement of fact is beyond me