Root Causes

Subprime once hurt the elderly, now hurts the world

Written by Leatherneck on August 10, 2007 under Archives, Mortgage Fraud, Root Causes, Statistics

Subprime lending once hurt the elderly in the United States. It only took three more years for subprime to hurt all borrowers and the entire world economy. Back in 2004 subprime was not necessarily predatory lending. Others argued that mortgage fraud became predatory lending, which then evolved into subprime. Regardless of the position you take it is clear that intervention and prevention at the federal level was missing. Here is part of the 2004 FTC testimony:

A perfect example of debt distortion

Written by Leatherneck on August 09, 2007 under Archives, Mortgage Fraud, Root Causes

Here is history’s warning: “Every new loan that is larger than the last contributes to increasing over-all economic instability. The outcome of such has historically been a crash corresponding to the magnitude of this debt distortion.” The quote comes from our booklet “The History of Predatory Lending“. Here is a pefect example of debt distortion:

Foreclosure and Your Security Clearance

Written by Timothy Blake on August 03, 2007 under Archives, Root Causes

A nightmare is unfolding for Americans who hold security clearances, both in the private sector and in the military. The U.K. may be equally hard hit as mortgages strain family budgets. But for those that thought their mortgage broker was telling them the truth many are finding out the risks outweighed the rewards.

Subprime Mortgage Blues Spread to Prime Loans

Written by Timothy Blake on July 28, 2007 under Archives, Root Causes

On July 25, 2007 US stocks slumped the most since March after Countrywide Financial Corporation, which accounts for almost a fifth of US mortgages, said second-quarter net income tumbled 33 per cent. Stocks fell further on July 26th and 27th. But what caught my eye is that Countrywide accounts for 20 percent of the US mortgage market and their profits were down by one-third.

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