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"You've been on a conservative website since 2000 and you really believe that?"

This is sort of off topic, but I can't resist. I have already stated that it's the borrowers not the lenders who have created this situation. But, I tend to agree with Fee. Especially in today's environment.
Used to be mortgages were difficult to get because they qualified you, and scrutinized your ability to repay. Now, with all the fly by nights that have popped up, you can get a mortgage quickly, with almost no effort. These guys operate like car salesmen. They don't care what you want, or what you need, they just want to get the most out of you.
Making money is great. Being a predator, preying on the ignorant isn't a way I'd want to make money.

I do believe in it because after 20 years of observing financial and corporate activities I first thought who needs government because who in business would screw the consumer intentionally because in the end you would be out of business. That is in theory, but look at reality. After the Savings and Loans bust, Dot.com bust, credit cards to college students who are still in school, Derivatives, Worldcom, and etc and etc. There are people in the finance industry who are willing to make a quick buck by selling defective deals and taking advantage of the foolishness of consumers. Many of these financial perps know what will happen but they took advantage of the loopholes in the regs or lack of government oversight and made their money. By the time the scam collapses, the consumer and the taxpayer is stuck with the bill, while the scammer have moved their money to dummy corporations or spent most of it so no one can ever get it back. Sure the scammer goes to prison, but first ones spend some time in prison before they were released for good behavior. By the time the government cracks down hard, the initial wave of scammers caught got off easy and are enjoying their ill gotten money offshore somewhere. Is it part of the consumers' stupidity, yes, but the scammer also knows that the loans are defective because they are knowledgeable about debt ratios/affordability factors, and they still pushed it onto the gullible/desperate consumer who wants to buy a house. I used to work in the mortage business and I am familiar with the rational behind the debt ratios and qualifications. Today we have major institutions who violated these concepts by taking advantage of the consumers' stupidity and pushing these financially risky loans onto them. Once they made their brokers' fees and interests they simply get these defective loans off their hands and bundle them with good loans (as a portfolio) and sell it to a reinsurer. Bottom line is the initial lender made their money and pushed the bad loan onto another insurer.