[rbg81]

Instead, Azimi, a cashier at Giant who makes $2,400 a month, found herself strapped into a no-down-payment loan with payments of $3,800 a month.

Obviously, a wise loan officer made THAT decision. These banks deserve what they get for being irresponsible. Unfortunately, the FDIC might have to bail them out.

[Abathar]

Most banks sell those mortgages before the ink is dry, it's the big houses that buy them up and hold them that's at risk of getting screwed here.

When I got my first mortgage the local bank had two prices, the cheaper of the two was if they sold the thing. I think that might be what is causing a lot of the problems here, the local banks gave the sub-primes out and then sold them to the larger brokers, and they failed to screen them as well as they should.

With the housing prices rising so fast they knew their butts were covered if they foreclosed, but that was the short view of things. Now that the market has slacked and flooded with homes they may get the money they need but the homes will sit for a long time.