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Originally Posted by BigPapaVol  Low mortgage rates are fine in the event that underwriting standards are upheld.
The lower rates certainly moved real estate pricing to an unsustainable level, but mortgage underwriting should still have precluded this enormous wave of foreclosures. The bottom line is that you can't lend money to folks walking a razor's edge to pay it back. It wasn't a presidential or Fed chair induced problem. They each played a role, but the investors in mortgages shoulder the biggest blame, and appropriately, the biggest losses. | Banks are insured by the FDIC who then in turn audit their underwriting standards every 6 months. The Chairman or Chairwoman of the FDIC is appointed by the President.
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Last edited by oklavol; 01-03-2009 at 06:50 AM..
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