I knew sub-prime mortgages were a SCAM when the banks started to lend millions to borrowers without verifying the home buyers’ income (BOA’s stated income or “Liars loan”)!
Why would any lender give mortgage $$$ to anybody without checking to see if they could afford to make the payments AND PAY BACK THEIR LOAN?
But if the mortgages where valuable as investments and bundled and sold to wall st., who sold them with S&P’s highest rating because Americans have the lowest foreclosure rate in the world (NOW THE HIGHEST!) to investors SUCH AS ICELAND (which went bankrupt) then “LIARS LOANS” make sense because this reckless lending results in more sub-prime mortgages that can and were sold to WALL St. to sell to STANDARD & POOR’S TRUSTING investors around the world.
It did not matter to the BANKS OR WALL ST. that 70% of sub-prime mortgages went into foreclosure and bankruptcy because they had already made their profits by selling the mortgages to wall St.
Millions of US lost our homes and jobs in the resulting great recession because of Bush’s de-regulations (republicans still preach de-regulation) that was payback for BIG BUSINESS donations to elect REPUBLICAN POLITICIANS!!!!!!!!!!!!
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