It sounds like you are assigning zero responsibility to the borrowers in these cases. Do you really think that personal responsibility should only be invoked by lenders and not borrowers? Are lenders to treat borrowers as helpless, dumb little children in the future? Are lenders to now steer you into certain loans for your own good, because you are too stupid to know what you need?
I won’t pretend there wasn’t a lot of fraud on the part of lenders, in light of the fact that many people who rated prime mortgages were steered and badgered into accepting sub-prime loans. So I don’t want to prepare this is nothing but Caveat Emptor.
But you are taking the opposite tack. Evil lenders are 100% responsible and innocent lamb borrowers have zero responsiblity.
Are you sure that you want to live in a future where the person signing a contract takes no responsibility whatsoever for what they sign? Is that what you want? Seems to be what you are saying.
Blame is useless at this stage of the game. Besides, there’s more than enough to go around.
If your a lending institution, and Fred the freeloader walks in, tells ya he makes 9 bucks an hour, and has 4k for a down payment for a 300k home...You going to lend him money? Of course not.
The greedy bankers and lenders lost all sight of their professional lending ethics and standards. It was a free for all, and these lending idiots are directly responsible for lending people money, that they KNEW could not pay it back.
This is no secret friend. It was all about getting those loan commissions.
You can blame the poor slobs for wanting money, but that blame is misdirected. The greedy financial professionals were in charge, and it was those lenders that had the AUTHORITY to approve the loans.
The lenders screwed themselves and everyone else.
Just like lenders that had the authority to approve loans. They held that authority, not the guy wanting the money.