Unsold Homes And Predatory Lending

Many of the horrific tragedies stemming from the housing crisis have left the nation’s economy in a state of shambles and could have been avoided with common sense and stricter laws.

This crisis has left too many citizens without homes and unable to afford their mortgage. Now, information has been released documenting instances within Freddie Mac in 2004 where it was known questionable loans were provided to individuals with sub-par credit who were unable to repay them.

Continued lending of riskier loans became a common practice at Freddie to increase inflows of capital. To date, more than one million homes have been foreclosed this year with no end in sight to how many more citizens will be forced to relinquish their house.

The negligence committed through predatory lending has caused far too much destruction. The taxpayer may be asked to carry the burden and foot the bill for Fannie and Freddie, which will cost more than $25 billion. It has also left hundreds of thousands of homes unsold on the market while deserving individuals cannot attain the necessary credit to purchase them. New and needed laws are quickly coming into fruition to prevent future practices of predatory lending.

Source International Herald Tribune:

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