tag:blogger.com,1999:blog-5977100937974295832.post5096462273544625960..comments2023-10-03T12:32:51.778-04:00Comments on Confessions of a Street Pharmacist: The foreclosure ripoffDivemedichttp://www.blogger.com/profile/14583007051962299381noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-5977100937974295832.post-24097125626246299432010-04-11T06:21:00.161-04:002010-04-11T06:21:00.161-04:00I used to believe that, but after looking into it,...I used to believe that, but after looking into it, I am not so sure. The subprime division (every bank has one) is the most profitable division of the bank. Between high interest rates, fees, and charges, the subprime unit pulls in much more money than the rest of the lending units. Interest only 5/1ARMs at 10% were pulling in much more than 30 year fixed rates at 5.75%.<br /><br />This isn't just true with mortgages. Credit cards with 22% APR, $80 annual memberships, $35 late fee, $35 over limit fee, universal default charges, etc were raking in the bucks.<br /><br />The only problem is with these risky loans, it was only a matter of time before something tipped over the delicate house of cards that most people built their credit upon.Divemedichttps://www.blogger.com/profile/14583007051962299381noreply@blogger.comtag:blogger.com,1999:blog-5977100937974295832.post-14004142082227311572010-04-10T19:37:39.485-04:002010-04-10T19:37:39.485-04:00Although there is blame enough to go around, the m...Although there is blame enough to go around, the main blame still lies with our elected officials and their lackeys. <br /><br />Maybe I'm just drinking the conservative Kool Aid, but a close friend of mine who makes money from the financial industry, but not mortgages, explained it all to me. In addition I read up on it. <br /><br />It started during the Carter Administration, but has gotten worse with each one since. Not only were banks and mortgage companies told that the government would make good on their losses, people like the excrable Barney Frank and Chris Dodd told the lending institutions they'd be labeled as racist if they didn't lend money to minorities <i>who almost certainly couldn't pay it back</i>. <br /><br />As I said, there is plenty of blame to go around, but it's the politicians, not the banks that deserve the most blame.TOTWTYTRhttps://www.blogger.com/profile/17221321904364051792noreply@blogger.com