FBI probing the mortgage industry

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Quote from: Son of Confederate Mother on January 30, 2008, 11:31:14 AM

Quote from: Spartan on January 30, 2008, 11:04:26 AM

Quote from: Son of Confederate Mother on January 30, 2008, 11:00:15 AM

IIRC, a lot of subprime lending involved creative ways around having to pay PMI and still buy with no money down. Much of the crisis, AFAIK, stems from the fact that a lot of available capital emboldened lenders to loan money to people who didn't really have the financial resources to own homes.

I would have thought these would be exactly the people to require PMI of.

but if they had to pay PMI, they couldn't afford the monthly home cost..it would have priced them out

So, the thinking was "Borrower A can afford this loan, let's make him pay PMI, but Borrower B can't so let's skip it"?

No wonder this such a cluster*fudge*.

Related Posts aske has to be a little happier today {P&R - mortgage crisis} http://www.msnbc.msn.com/id/25259083/[quote]WASHINGTON - More than 400 real esta by Fuzzy FBI - Ooooopppps! FBI loses laptops w/ classified info. [sm_disgust] [sm_shock]http://www.c by Teed If you're called by all 3 of your names...you're usually a trouble maker. The 3 name thing must explain why it took the FBI so long to finger Bruce Ivins by Blader Wow. I agree about mortgage brokers. They are wannabe but can't cut it cel by Uisce Beatha

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