If You Think the Meltdown Was the Fault of Homeowners, Think Again…

At the end of 2007, there were roughly $1.4 trillion in sub-prime mortgages in this country. If “irresponsible sub-prime borrowers,” caused the meltdown, then $1.4 trillion would have solved the problem in its entirety, right? Because that’s all the sub-prime loans there were. But, between the Federal Reserve, the FDIC and the Treasury over $13 trillion has been pumped into financial institutions to fix the “housing correction,” which is what Hank Paulson was still calling our economic collapse as of November of 2008. At the end of 2008, there were $11.9 trillion worth of mortgages in this country. So, with $13 trillion, the government could have paid off every single one… and still had a little over a trillion dollars left over.

What are QRMs? Qualifying Residential Mortgages Are Government’s Newest Mistake In The Real Estate Market

“The federal government has been looking for new regulations to prevent another real estate market collapse like the one caused by the shoddy lending standards and subsequent mortgage defaults and foreclosures of the past few years. Classifying mortgages in to “safer” categories is the latest plan, and it has wide-reaching effects.”

Baltimore v. Wells Fargo

“In 2008, the city of Baltimore filed a legal complaint against Wells Fargo, alleging that the lender violated the Fair Housing Act by disproportionately targeting minority borrowers for subprime loans–what’s called “reverse redlining.” The lawsuit alleges that the bad loans led to foreclosures, and it seeks damages, claiming that vacant foreclosed homes depress property values and become a financial burden because of demands on city services like police and fire calls.”