Why is it that so many americans can only qualify for subprime mortgage loans to buy a house?
I have heard the lenders blamed for being greedy, I have heard borrowers blamed for being greedy and stupid. But isn't the real problem that we have a nation full of people whose credit is in the toilet and they cannot qualify for a regular "non-subprime" mortgage? WHY ARE SO MANY PEOPLE ONLY ABLE TO BUY HOMES BY GETTING MORTGAGES FOR MEANT FOR HIGHER RISK BORROWERS???
I think that all of this things are in their own small way complicit in the attack on the american middle class and the american dream. People's credit sucks yes partly maybe from lack of wise decision making, but if the whole nation is in the toilet, there is more at play that some of us dont want to admit.
One other point is that this crisis may be related to the new credit scoring computerized system that was implemented some years back. Many people who can afford a mortgage and pay bills generally on time, are left out in the cold from a "good" mortgage simply because the computer says their credit score is x and x means they are not qualifed for a standard mortgage.