John Venlet [1]notes that the FBI is reportedly conducting investigations into 1300 mortgage fraud investigations, more or less. Says John:
While the FBI may find a few prosecutable mortgage lending fraud cases, what will mostly be brought to light by their investigations will be the foolishness of the underwriting guidelines utilized by the subprime lending industry, and the unethical, but not illegal, methods which were utilized to suck subprime borrowers in.
I’m not so sure, John, that you’re placing the blame in the right spot. I think what we have here is the law of unintended consequences, where government is concerned, poking it’s head up again.
Look; Let’s remember, that this whole thing started when the legislation was created with one major goal in mind… evening the percentages of lower income people who were able to own homes. This attempt was the direct result of the race hustlers complaining about ‘equal rights’. What we’re seeing, here, and what nobody… and I mean nobody, is willing to admit to, is the idea that there may have been reasons other then racial discrimination, or discrimination based on all the other usual hot buttons, at the root of why these people weren’t getting loans…. like for example, the bak got the idea somehow that the people that didn’t get loans, didn’t, because they couldn’t pay for the loans.
What I’m suggesting is that the banks, statistically, were correct, and had the situation in hand until the government came along. The proof if the point is this subprime meltdown itself, which in turn is the direct result of government meddling.
Is not lending based on race, or whatever, right? Of course not. But maybe racism wasn’t the issue, after all?
Well, don’t hold your breath, waiting for anybody to say this publicly; They don’t want to be the focus of the race hustlers.