Couldnt Equal News Today : Breaking News, Live Updates & Top Stories | Vimarsana

Were, one, that loans were being made on property that couldn't equal the value of the loan. the assumption was that the property would appreciate and it didn't and two, that tied with the facts that loans are being paid to people who couldn't 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 it does nothing about significantly changing the underwriting standards so that loans are made t...

The two drivers of this event were, one, that loans were being made on property that couldn't equal the value of the loan. the assumption was that the property would appreciate and it didn't and two, that tied with the facts that loans are being paid to people who couldn't 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 it does nothing about significantly changing the underwriting stan...