An expose of bad businesses and their unethical practices

There is no question that the current financial crisis involving mortgages, sub-prime loans, and foreclosures is a critical issue rippling through companies in the United States and moving to companied abroad. How did this problem get its beginnings? Who is to blame? If one uses the old adage “follow the money,” it is easy to see that at least one finger must be pointed at the mortgage lenders themselves.

It is these lenders that were eager to get the business, and to rake in all of those closing costs and loan fees that came straight off the top of the transactions and landed in the coffers of the lenders. It was the greed of these lenders for more and more of the same that continued to increase the number of bad loans to such a high level.

Credit decisions are the business of these people. It must have been obvious to them that some people that could qualify for $800 payments during the first part of the loan period could not qualify for the $1200 payments that would be required during the second period, yet they continued to make the variable-rate sub-prime loans. Much of the blame for this crisis must accrue to these lending institutions. They bent their ethics making sub-prim loans to distinctly sub-prime borrowers.