Who is the Most responsiblie for the Sub-Prime Mortgage Crisis

Mortgage and Lending with Mekka International Business and Financial Services


Since the mortgage industry has dominated the news in the past few months or so, I was wondering who you thought was the most to blame for the sub-prime mortgage crisis. Please check the choices below.

I was reading one of the on-line trade publications yesterday and found that seven other mortgage companies closed their doors and laid off several thousand more people. Some were wholesale while a few were retail lenders or banker/brokers

One of the biggest of the bigs that purchased mortgage instruments were Bear Sterns who were purchased for about $250 million dollars over the weekend, somewhere around $2.00 per share. This company was worth more than $175.00 per share about this time last year.

My other pressing question was do you think the government should bail out the borrowers who accepted and signed for these mortgages?

Do you think the government should bail out the large firms that purchased these mortgage instruments for their clients? 

I understand that the mortgage career field might have several over zealous mortgage sales-persons. However, don't you think the person that will be paying the  monthly mortgage and signed the loan docs should take some responsibility. After all they are told to read before they sign any documents and not to sign if there are things they do not understand.

Are we in a time period when no one take responsibility for their own actions? If and when things do go wrong they blame everyone except themselves. They blame the loan consultant, because it is claimed they were told to sign and things would be alright.

The biggest one is I was told one rate, but when I went to sign the loan docs the interest rate and terms were not the same as I was told.

How much are the mortgage professionals responsible for the crisis?  Are there really that many unscrupulous mortgage consultants that make a mockery of our industry by selling mortgages to individuals that can not afford them? 

We can go on an on but the key question is who is the most to blame? We can not take an accurate survey here on this site, but make your selection. I will check back occassionally to see how you voted. 

[   ] Originators

[   ] Realtors

[   ] Sub-prime Lenders

[   ] Government

[   ] Borrowers 

[   ] Other


Comments (1)

Stephen Graham
Inactive - Atlanta, GA
I think FHA should make loans at low rates, not just insure them. FHA could use the profits to pay down our national debt; or even better, supplement social security.
Mar 20, 2008 08:42 AM