To all of you who say the Financial meltdown was caused by greedy Wall Street Types and Bankers...You couldn't be more incorrect.
When a Mortgage lender makes a home loan, he makes the buyers of a home get qualified through the Government Agencies of Fannie Mac and Freddy Mac. If the Mortgage broker or Banker was told that their home buyers mortgages weren't going to be purchased by one of those two agencies..The Banks or Mortgage Brokers would not make the loan!
Mortgage brokers and Bankers make their money off the loans up front in commissions. They don't hold the loans themselves and make the interest off the mortgage over its life. They sell it to those Government entities. If the Government told the Mortgage Broker or Bankers they werent purchasing that particular mortgage..Those homebuyers were out of luck!
This proves that the whole mess was caused, sponsored, and promoted by the Government! Quit hating on those who had nothing to do with the meltdown! You can however be pissed at Barney Frank who was chairman of the oversight committee; for lying about the health of those two institutions, which he did repeatedly!
Governments Fault..Not the Private Sector!!