It seems everyone knew certain people would not pay for their 350,000 dollar new home but politics prevailed, so has anything changed are we still knowingly making bad loans for political reasons, called votes. Just have far are we to go down the road of politically correct loans.
http://money.cnn.com/2008/11/25/news/economy/paulson_consumer/?postversion=2008112510
Yes. Banks are still required by law to loan to people who don’t know what they are doing finacially.
Comments
Yes. Banks are still required by law to loan to people who don’t know what they are doing finacially.
References :
1 – lenders were NEVER "required" to make sub-prime loans. They did it because they could sell mortgage-backed securities and could earn big fees and profits-on-sales of those securities.
#2 – you may have misunderstood the article referenced if you truly think it is linked to the issuance of sub-prime loans.
References :