Recent housing and economical reports in the news and print publication like this one are a bit insulting to anyone half way intelligent. Talk about stating the obvious! If anyone for a second believed that buyers queing up overnight to put a contract on a condo needed a place to live, they need their head examined. Banks, developers and realtors all knew most of the contracts were NOT for primary oocupants and if the bank believed it, well, they really need to raise the level of the IQ of people they hire.
Come on, everyone was buying, selling, lending, writing title insurance like it was our last days on earth and now the reporters and analysts see it as “news” that many subprime borrowers bought properties with no intention to live in it and that the poor develkopers and lenders were unaware. Pleeeeeeease.... a lot of people closed a lot of eyes and made a lot of dough so a buyer mistating their “intention” to live in the property is not news worthy and focusing on the wrong culprit.
We need to focus on the training and eductaion of loan officers and mortgage brokers. You can get your mortgage license in one weekend and start putting loans together. Current systems for lending institutions put a lot of pressure on the volume of loans that need to be written and the commission structure paid to mortgage brokers and loan ocers is condusive to them “closing an eye” on what borrowers state on loan applications. However, money makes the world go around and everyone was making lots of money with no thought to the consequences and now analyst report this as news worthy! If we really “fessed” up to all the real causes of the real estate and mortgage boom and bust, we could learn, improve our systems and avoid the “day trader” pitfalls of this bust in the future.