Who do you think got those mortgages? There is already numerous studies that show a high percentage of subprimes, going back to 2003 and escalating in the housing bubble of 2005-06, went to hispanics and african-american borrowers.
The boys in the banking business and the WSJ and the White House don't want this out until the amnesty votes. Bottom line, most of those subprimes did not go to boomers cashing out to get their Volvos.
All those subprime mortgages have an address. The records (few that they are) show a footprint that coincides with the heaviest concentrations of hispanics and african-americans. Many have a taxpayer number rather than an SS number (=illegals). These studies were not concerned with subprimes so much as they were focused on predatory lending taking advantage of minorities. Discrimination against blacks has been around a long time, but tapping into the hispanic market to win their business is new and has been an all out effort, now expanding to credit cards.
More than half the new loans in the Central Valley went to people who didnt speak English....Visalia in particular.
Well I'm sure some loan fraud will be found but it is not all illegals. To characterize this as an illegal problem is wrong. It was fueled by Greenspan's injection of liquidity and cheap money. The bankers passed it on. Sure some are shady but in the end this is a broad based issue.
A local real estate freind said 50% of the homes he has shown in the last month are empty. People have bought up and can't sell because lending practices have tightened. The potential buyers can't move up because they used their home as an ATM or are trapped in a ARM and can't get a new load, . . . . because the lending practices have tightened. Also, the radio ads are now 'Make money on foreclosures!"