The Mortgage Collapse Culprits

Steve Cooper
Theconservativemonster.com

Banks were forced to give loans based on race rather than the ability to pay back the loan. That was a recipe for disaster and you GOT ONE….

23 thoughts on “The Mortgage Collapse Culprits

  1. I am sooooo glad you addressed this, Steve! Enough blaming President Bush, already! Put the blame where it belongs. On the globalist, Socialist, Democrats! Playing the cards he was dealt, particularly by a Democratic Congress, President did an outstanding job holding this nation together; especially in the wake of 9/11.

  2. I find it strange that the name Phil Gramm, the long time Republican Senator from Texas, is not on the top 10 list. If it was not for the 1999 legislation spearheaded by Gramm and signed into law by President Clinton — the Gramm-Leach-Bliley Act — almost all of the subprime mortgage practices that got the US into the current pickle would still be banned.

  3. The list forgot former Countrywide Financial CEO Angelo Mozilo. Keep in mind that Countrywide was the single largest mortgage company in the country for many years. It originated about 1 of every 5 of them in the early 2000′s (from 2000 to 2007) and even a higher percent of all the subprime mortages during those years. Finally, Mozilo did not run a bank and thus was not forced to lend anything to anyone.

    The son of a Bronx butcher, he took home about $470 million between 2000 and 2007. But he has also been listed second on a list of “Worst American CEOs of All Time” because of all the bad loans he made.

    • They can only fit so many people onto one page, but he certainly should be part of the list. How many backroom deals were made to buy up bad loans and spread them out so that the US Government would pay up? The bottom line is that the banks forced these bad loans and FRAUD was also a problem, because criminals knew that the Feds were footing the bill.

      The Soprano’s did a few shows about HUD scams and fraud that were very interesting. Andrew Cuomo should also be added to this list.

  4. The #1 person on the list of culprits is Jimmy Carter. He is noted for his signing the Community Reinvestment Act and forcing the banks to increase the risk of default on their loans. As I remember it, that law was passed in 1977 and the subprime crisis occured in 2008. I make that 30 years later (give or take). I also heard that most of the bad subprime loans were made in the last few years before the crisis (2005, 2006 or 2007).

    It makes me ask why did it take so long for the 1977 law to cause a problem? Why did everything work for near 30 years and then fail? Should we have not had a problem 5 or 10 or 15 or even 20 years before 2008 with this bad law? Could it be that something else changed, say 25 years after 1977?

  5. I was a lending officer during all this and couldn’t believe how many people were approved for ridiculous amounts of money. I personally made about 40k/yr and was approved for 185k and was a single mom! Later was a Realtor and felt it was my personal responsibility to talk people into homes they could afford, not ones they were approved by the bank to buy. Didn’t do much good, tho…

    • It wouldn’t shock me too if there were fraud schemes involving organized crime and crooked politicians to defraud the banks with the approval of the US Government to undermine the banking industry.

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