damned if they did and damned if they didn’t.
From the article: “”He said that minority borrowers who qualified for prime loans were steered into higher-interest-rate subprime loans.””
The qualification was that they WERE minority - it stopped right there. If they were qualified, they wouldn’t have gotten the subprime loans.
The article goes on to state that the customers turned down for loans or those who took out subprime loans would receive compensation from the settlement when more details were known - didn’t copy and paste the exact words... They didn’t have details when the suit took place?
People in government sure do things differently than the rest of us. What’s wrong with us? Are we really all people from different planets with different thinking processes?
Again another untrue fact. Fannie and Freddie reduced loan requirements in order to let a bigger amount of “qualified” borrowers into the pool. If you had said that you would of been correct. However, you incorrectly attribute loans made by companies WAMU and Golden West Financial to this issue. Those companies made loans that they kept under their own belts that were far worse quality than the one’s sold to Fannie and Freddie. Pick a pay mortgages was not invented by the government. Negative amortized loans were not invented by the government.
Everyone in the system is at fault, from the banks who made bad loans, to the governement that expanded the pool of borrowers, to the borrowers themselves that took advantaged of stated income loans, everyone was involved in the shell game of the housing bubble that caused people to buy in so they could double their money in 5 years, or multiple their money increase by sometimes a pratically infinite amount of times by putting no money down and then trying to flip their homes.