The Mortgage Banking Meltdown

[mikeboosh]

haha, its amazing how unbelievably ignorant and simplistic the person who made this video is. Brokers submit the application to the bank for starters, numbnuts. So why did the bank accept them? Ever hear of Fannie Mae and Freddie Mac? They were insuring the first 20% of principal. Sorry if this doesn't fit with your anti-corporate ideology.

[ConejoZing]

THE AWFUL AUGHTIES. Remember the insanely aggressive push for houses, the bigger the better? McMansions galore, Hummers, outsized living, scary waste. People with really bad credit scores were shoved into the largest house possible... all for the broker short term fees.

[lwnamr]

waw these clips are so well made..congrats!

[SaviorOfLogic]

You forget the governments involvement.

[kingofboggle77]

Nice work! Thanks

[Elephant1960]

That's definitely one of the most informative videos I've seen about this subject. Thanks for posting it.

[EnspireLearning]

Glad you enjoyed it. Granted, it's simplified, but we're glad it has started discussion, especially in our first video you can see in the link provided. Thanks for watching!

[mannyfeseha]

thehelpfund.blogspot

[millergt]

I think it is important to realize that there is rarely a single identifiable cause of problems of this size, while predatory lending was a major cause, so was the CRA (not all Clinton's fault either)... there were plenty of other factors that contributed to the problem as well.

[EnspireLearning]

This is very true. This is part of a series of videos exploring some of the causes behind the crisis. In no way were we intending to point out one guilty party, as the situation seemed to be a perfect storm of several different issues occurring at the same time.

We hope to do another video that will further delve into some of the other pieces of the puzzle.

Thanks for expressing a level-headed comment on the subject! That seems to be a rare thing to find on the net these days.

[DeadCatX2]

Actually CRA loans are still considered profitable; see the House hearing with law professor Michael S. Barr, a Treasury Department official under President Clinton. Additionally, the brokers mentioned in the movie above are exempt from CRA. Had CRA applied to them, they wouldn't have been able to sell shoddy mortgages.

[wllmyrs]

First!!1!!11