Lenders, this is the perspective of a political family member of mine (who was a mortgage lender for a brief period). Does ANYONE share this perspective?

"Home owner's are now losing their property in record numbers. The culprit, as has become conventional wisdom, is the "adjustable rate/teaser mortgage," also known as the ARM. Bank's issued loans to families with questionable credit and because of such questionable creditworthiness and because of the supposed accompanying risk of loss to said lenders, these loans were manufactured with low introductory rates. Yet, after a certain period (usually two years) the rates were subject to adjust upward. Hence, this is the origin and underpinning of the new American economic meltdown.

Now, because millions of loans have adjusted upward as the lending boom has come upon its third year, families are going into foreclosure in record numbers-causing a ripple effect in the national economy as property values decline and banks tighten their lending/monetary policy.

SO, WHO IS TO BLAME? LENDERS!!!!!! Borrower's with bad credit were SOLD (often by shrewd loan officers alongside their management co-conspirators) on the premise that their credit would improve by virtue of the refinance/purchase loan and the home owner would be able to refinance their adjustable rate mortgages two years hence into a lower fixed rate because of their newly acclaimed responsible credit behavior stemming from said refinance/purchase! WRONG! Once a person moves into questionable credit, such person will likely remain with questionable credit-and the lenders have known this from the start. SO, now the taxpayers are going to bail each other out-transferring money between the middle class (taxpayers bailing out taxpayers via the federal government) and in effect, the rich/BANKS remain exponentially profitable, stay alive to merge yet again to become bigger giants that mislead consumers, while swallowing the international capital markets and invading those that conscientiously object to the process!"

That's one man's perspective...