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"Predatory lending" is a bit of a bullshit term. Not all borrowers were victims. Along with everybody else they were gambling that housing prices would only go
by jacoblyles 16y ago
"Predatory lending" is a bit of a bullshit term. Not all borrowers were victims. Along with everybody else they were gambling that housing prices would only go up.
A person signing a contract for a no-doc interest only 95% mortgage in 2004 knows what they are getting into. It's not like they were tricked into it by some evil banker.
- Confusion 16y agoIf you think people signing a contract for a mortgage know what they are getting into, then you don't know people. The first 10% is illiterate, the second 20% numerically illiterate and then there's a huge partition that just doesn't understand the math and the options. People are being taken advantage of, because they don't know what they are getting into.
- gsmaverick 16y agoThen they should seek the advice of a professional before signing a very large contract in the form of a mortgage. Executives shouldn't be held responsible for people who don't read fine print or who fail to understand how mortgages work.