This article illustrates brilliantly how political interference in the mortgage industry, under the guise of the CRA, led to lenders falling over themselves to make reckless loans to "borrowers" who had no prospect of paying them off. Well, I wonder how that turned out?/s
In my mind this begs a question that maybe some Freepers with greater insider knowledge of the mortgage or mortgage wholesaling business might know: did HUD, and/or Fannie and Freddie actually condone disguising the nature of the loans that these lenders were forced into? Were the prospectuses for such loan packages/ABS bond issues legally doctored to conceal the toxic nature of these mortgages? Or did Fannie and Freddie just assist in stirring this junk in with the other normal loans that got packaged under their good names?
bttt