It wasn’t a comment so much directed at you. I am just wondering what class of people were primarily responsible for the defaults - low income, middle income or wealthy speculators? I just haven’t seen much explaining this.
All of the above.
See Post 73.
All classes of borrowers, low income, middle income and high income were used as tools in the Pigeon Drop scam. Investigators have even found mortgages made out to DEAD people!
In order to understand the scam, it is important to realize that the "pigeons" being scammed were not the people who borrowed the money. The "pigeons" being scammed were the investors that were buying up those mortgages that the loan brokers were writing as fast as they could in order to make Big Bucks on commissions.
It did not matter WHO signed the mortgage or their ability to repay the mortgage as long as loan brokers sold it to the "pigeon" for a nice commission.
Thus, you have unemployed people borrowing $200,000 they couldn't afford to repay, middle class people borrowing $600,000 they couldn't afford to repay and high income people borrowing $1.5 million they couldn't afford to repay.
Thus, you have low income people defaulting in poorer neighborhoods, middle class people defaulting on a McMansion and high income people defaulting on that $1.5 million condo in Miami Beach.