Why do people with unstable jobs purchase houses then complain when the bank repossess?
Everything in life is a gamble. Some people are bad gamblers and poor losers. Banks used to make money from mortgages over the long haul. Government policy on who should be eligible for a mortgage (essentially anyone who applies) created an environment where the only guaranteed profit to banks from mortgages came on the front end with origination. Once the banks had their profit, they sold the mortgage as fast as possible. Am I surprised banks may have tried to get people into high ticket loans? No, I’m not. They didn’t care if you could afford the loan or not because they had no intention of holding the risk involved. But there was a time before the 1990’s when if you couldn’t afford a loan, banks had no problem saying so. The error in government policy in regard to “affordable” housing was definitely in supplying truck loads of cheap money targeted at the mortgage sector. People who wanted to buy a home but couldn’t before the 1990’s would have been better served had government polic
