Whos to blame for the mortgage mess?

Who is Responsible for the Mortgage Mess?

Beverly A. Bayer, SRA - Real Estate Appraiser, Moreno Valley, CA.

Is it the couple who bought their first home?

Found by their real estate agent?

Who suggested the loan broker?

Who placed them into a loan, made possible by an appraiser's value?

Funded by a lender who accepted the appraised value and the borrower's credit worthiness; and designed the loan product?

Or the secondary holder of that loan who packaged it into mortgage backed securities?

Or the retired teacher who invested her life savings into that mortgage backed security; at the suggestion of her stock broker, as a source of monthly income?

Or was it the rating entity that gave a good score to that mortgage backed security that the retired teacher bought into?

At the suggestion of her stock broker, whose brokerage house had a vested interest in that mortgage backed security?

That was comprised of loans made from the lender who funded the couple's mortgage loan and designed the risky loan product that generated income to their bank.

That was brought to them from the commissioned, unlicensed loan broker, who uses appraisers who overvalue properties and encourages borrowers to lie about their income.

Who was suggested by the couple's real estate agent, who received a commission at the close of escrow of the couple's dream home?

Or the couple who exaggerated their income to qualify for the loan needed to buy the house they could not afford.  That is now in foreclosure.

..... You know greed took over, and now the U.S. Government has to step in, to preserve the mortgage industry.  There was money to be made and responsibly was shifted to others.  As an appraiser we are expected to preserve the public trust, but that went out with window for the appraisers who agreed to play along with the needs of their lender clients.  Being an honest appraiser in the crazy years was a liability; but many of us stood up for what was right, losing income along the way; and take no glee with the havoc irresponsible lending has wrought.