I caused the housing crisis. So did you. So did the crazy neighbor down the street with 15 cats. So did the politician that voted for many things you agreed with - and sometimes things you didn't agree with. Your crazy nephew that has jumped from one multi-level marketing idea to another was also responsible. That guy down the street with the fancy cars? Yup, he's in on it too.
It wasn't just one person. When your crazy neighbor down the street decided to buy a rental property for each of her cats, her actions pushed house prices higher. When the politician voted to allow Fannie Mae and Freddie Mac to continue with limited oversight, he contributed to the meltdown. When your crazy nephew joined that investment club and bought 10 rental properties in Las Vegas, he contributed to the problem. And the guy down the street with the seemingly endless supply of exotic cars? He was busy providing data to the industry that rated mortgage-backed securities. Turns out his data had a few holes in it.
The only point that I'm trying to make is that the financial meltdown that occurred in the mortgage industry did so because of a variety of factors. Greed played a role on every level; however, it would be unfair to blame the entire fracas on one or two players.
My advice is to take what you hear with a grain of salt. When you see statistics that say mortgage fraud is up 300% you should question the information. Mortgage fraud is up because it's actually being investigated. When new legislation is passed to curb abuses under the guise of consumer protection, you can bet something entirely different will happen. From what I have seen so far, it has only made things more time intensive and more expensive for the consumer.
Thanks for listening and I'm sorry your neighbor's cats got foreclosed on last week.