If you can see thru the 'blame' placed on one particular political party here you will still learn about what was happening in the housing market and how Congress had a hand in the loose lending guidelines....
Re-Blogging this article is strongly encouraged!
Burning Down The House: What Caused Our Economic Crisis? ! <= Alternate link to a better version!!
I get soooooo many questions about the housing crisis and what caused it and what can be done to fix it today. So here it is.... A bit of a lesson about the Community Reinvestment Act(CRA) and how far reaching some of this really went.
Jeff Belonger has written many posts about how many borrowers who qualified for FHA were actually placed into Subprime loans because the loan officers either didn't know any better or were lazy.
He has also points out below(prompting this edit) that the borrowers themselves have to look at themselves a little bit too!!! Borrowing 100% financing at th very top price range they could afford and then putting Interest Only on th loan was very reckless.
If I had a dollar for every person blamed in this mess.... Well, I would be paying a ghost writer to write better blogs for me!! LOL
Please enjoy the video, but beware of the slight pg-13 nature of some of the musical background.
Tom Burris
DallasLoanGuy.com
Dallas, TX
"Your Dallas Mortgage Consultant"
http://www.dallasloanguy.com/
Texas Home Loans Dallas Mortgage Loans
I write about Texas Home Loans , live in the Dallas, TX area and lend across the entire Great State of Texas!! Subscribe to My Blog and stay informed about current lending changes!!
While I personally focus on Texas Home Loans and First Time Home Buyers.... I do lend in other areas. We are in about 46 States and adding programs to bring full service to an area near you.
Tom... 200 pts for 2 sentences and a video? ;o) Seriously, there is so much that we can blame the mess on. I would say the start of it was those that put borrowers into subprime loans that could have done FHA loans. Secondly, those borrowers that did 100% financing or 95%, with a ratio of 50%... especially if they had hardly any debt and that was their front ratio... ouch. And yes, the my community 100% which would sometimes allow 55% to 60% ratios.... come on... after taxes, people wouldn't have much money left...
ANyhoo... the list could go on and on...
Tom, excellent video you found, and most of Obama's current economic advisors made off like bandets. As Lenn would say follow the money. They had balance sheets, and board meetings, where was their boards, what were they looking at when they saw this coming. There needs to be accountabilty here, not just for the top dogs but for those who sat on those boards and allowed it to happen. Where are those guys? McCain spoke against this in 2005, no one listened, not the Senators or anyone. Now we are bailing out the very ones you benefited.
Thanks Missy
Even though this is slanted... it DOES help the layman understand what happened.
Thanks Eleanor....
I am a big believer in personal responsibility. Yet, the fact remains that the guvt helped create this mess. And the very party who caused it is in there to fix it. BWAHAHAHAHH