Is your home worth more than your mortgage? For many Americans that is not the case and they fall further and further behind in their payments.
Yet why did so many Americans obtain mortgages they should not have?
Have you wondered why you can’t pick up a paper today without reading about someone having their home foreclosed on and what caused that problem?
The number of Americans behind on their mortgage payments keeps increasing. For some- they obtained mortgages they could not keep up with. Many mortgages were given to people who could not repay. According to panelist: Richard Bitner,” the mortgage industry is essentially a food chain-
Borrowers on one end and investment banks, rating agencies and securitization on the other. Mortgages were bundled and sold off to investors world wide under the belief they would perform better than they did. There was a belief that mortgages were low risk, like bonds.”
Panelist: C.K. Lee adds “ People owning homes is a good thing. Everyone from the President to mortgage bankers have said so- BUT- But there was a flawed premise behind this . The problems started with investment banks and Fannie Mae and Freddie Mac- operating under the auspices of government.”…
In this program we’re going to examine, in simple language, all the mistakes and fraud that led us to where we are today and the many causes of the mortgage debacle.
- C.K. Lee –Managing Director; Commerce Street Capital
- Richard Bitner- Author; Confessions of a Sub Prime Lender
1903 – 2.20.11