11-12-2008, 03:01 PM
jvanderwall Wrote:Actually Arbor Mortgage isn't any different then a bank because all they are is a broker who simply does the same things the bank does (FHA loans have requirements which borrowers have to meet) The real problem is the people who can't plan far enough ahead to pay their mortgage and the people who feel they are entitled to get a loan for a home they can't afford.
I would call that a bold statement. Most people that are having their loans foreclosed on are doing so because they've commited to ARMs. They were foolish to think that the rate would stay put or go down, but I would imagine there would be pressure from the salesman for them to get approved. During that time, the Fed was consistently dropping rates, and trends were showing that rates would continue to drop. Unfortunately, everyone in America doesn't completely understand macroeconomics, and they could therefore not (by little fault of their own) know that their mortgage could double in size, etc. I would say that just as much fault should be placed on the lender as the lendee.
IMO.