Couldnt Equal News Today

Were, one, that loans were being made on property that couldnt equal the value of the loan. the assumption was that the property would appreciate and it didnt and two, that tied with the facts that loans are being paid to people who couldnt pay the loans back. that was poor underwriting. terrible underwriting. then the loans were sold into a securitized market driven almost entirely by freddie mac and fannie mae. it leaves the taxpayers of america with almost a $500 billion obligation there, and...

The two drivers of this event were, one, that loans were being made on property that couldnt equal the value of the loan. the assumption was that the property would appreciate and it didnt and two, that tied with the facts that loans are being paid to people who couldnt pay the loans back. that was poor underwriting. terrible underwriting. then the loans were sold into a securitized market driven almost entirely by freddie mac and fannie mae. it leaves the taxpayers of america with almost a $500...