DIYbanter - View Single Post - Paulson begins wrapping his gift to FRAUD Street

Kurt Ullman

In article ,
wrote:

On Thu, 25 Sep 2008 04:40:04 -0700 (PDT), wrote:

Also, a lot of these loans going bad were made to people who had
higher incomes and would never qualify for this program. Cases like
2 income families making $100K+ that chose to push their finances to
the limit and buy as big a house as they could, with an ARM set at a
below market teaser rate. Many of these people were barely able to
make the payment from the start and planned to just hold on to the
house for 3 years, then flip it for a profit. Problem is, some of
them fell on hard times, lost one income, etc, then had the ARM adjust
from 2% to a normal market rate of 6% and then had the house value
decline 30%+ as well.

I didn't say it was the whole problem. Unscrupulous lenders were a
huge part - especially when they could pass the paper quickly.

The people who bought houses and got these mortgages based on the
fact that they could sell them for much more money in a few years showed
just as much greed as the Wall St. dudes yet they get to slide, if not
actually encouraged to do it again.