At The Center of Our Housing Crisis Is That Many People Have No Equity Or Are Upside Down on Loans

At the center of our housing crisis is that many people here in California and the United States have no remaining home equity or that they are upside down on their loans.
Too many people purchased homes during the past five years with no or little down payment, based upon no document loans, and with lending practices so relaxed that mortgage agents and brokers participated with at least some knowledge that loans should not be approved and funded.
Whose fault is that? Is it possible that mortgage brokers and lenders are at least partly responsible?
Even if it is determined that mortgage brokers and lenders are partly responsible, the individual borrower and homeowner has no comfort. Their primary focus would be on pressuring the mortgage broker or lender to assume the loan back and take over the property. The homeowner would ask that they be cleared of responsibility for the loan.

Posted by Harrison K. Long, Explore Properties Group, April 26, 2008

Tags: Lending, Mortgage, Ethics & broker practices