Submitted by: Submitted by awilborn
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Category: Societal Issues
Date Submitted: 03/13/2015 10:00 AM
MORTGAGE CRISIS 1
Angelina Wilborn
FI 425
Martin Harrison
March 5, 2015
MORTGAGE CRISIS 2
ABSTRACT
There is a heated debate surrounding who should be held liable for the subprime mortgage crisis.
This hosing crisis submarined the U.S. economy into a tremendous recession. This recession left
thousands of Americans without homes and pensions. The question some Americans want to
know is responsible? As noted by Byun (2010), some researchers have proposed that banking
institutions, brokers, investors, governmental regulators, politicians, mortgage lenders, borrowers
and Wall Street all share some accountability for the economic meltdown. The unfortunate
reality is that no one wants to take responsibility for this crisis. Is the government at fault for
their negligence for not protecting victims of predatory lending? Should Americans fault
mortgage brokers who sold loans to unqualified borrowers in order to collect a larger
commission, or should Americans blame homebuyers, who accepted loan terms knowing that
they would not be able to fulfill their long-term obligations? Ultimately, the responsibility of
for the collapse is a collective effort of numerous parties.
MORTGAGE CRISIS 3
The Subprime Mortgage Crisis, Who Really is to Blame
Within the last decade and prior to the subprime mortgage crisis, mortgage lending had
advanced tremendously from brick and mortar institutions, where borrowers had face
to face interaction with their lenders, to web based retail lending accessibility. The primary
reason for the new transition was the massive increase in mortgage...