Loans to poor people is not what broke down the system?

How did a person with no income statement, no down-payment, and a job that pays $30,000 a year get a loan for $200,000 to buy a house?

If someone poor went to a banker and asked for a loan, and the banker can tell that this “poor” person can’t repay that loan. but if the banker gives this loan anyway, so he/she can make a commission, then this loan gets securitized and sold as AAA. who’s fault is that??? My opinion would be the person who did not see that for the 1st year their payment would be at 1% and $200.00 a month, but would change yearly until the loan settled at 6%, and then their payment would be $600.00 a month, plus taxes and insurance. Anyone would was stupid enough to take out this type of loan caused the problem. You blame it all on the banks. I have bought several houses over the years, each loan was explained to me in plain English and I knew what my costs would be. I looked at what I made vs the costs and bought based on those factors. Not the factor that i was qualified for nearly double what I borrowed, because I knew I could not afford what i qualified for.

It is so easy for everyone to blame this on the government, on the banks, on the mortgage companies, I say it is mostly of individuals fault, they need to take responsibility for their actions.

Bob.

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