Who really is to blame??

Who really is to blame??

• Borrowers -  remember, Buyer Beware! We are quick to recall that old adage until it happens to us. However, buyers must take some responsibility before they are quick to point blame.

• Lenders - Most lenders originate loans to consumers with the plan of immediately selling this loan to another institution. Greed by lenders to get paid a commission led to "liar loans' and a wide disregard of borrowers ability to pay for the mortgage.

• Banks - Lack of over sight by management, low underwriting standards and poor explanation of borrower risks are key factors to the sub-prime meltdown

• Wall Street -Investment banks pooled these CMO 's (collateralized mortgage obligations) and sold to their investors with high rates of returns.

• Government-  lack of now planned oversight of allowing too many to buy what they cannot afford in order to support growth, may have come too little too late.

We all have our opinions of who is to blame.

Unfortunately, there is no one answer.