On subprime mortgages . . . Amidst the recent clatter over the failure of the subprime mortgages, there has been spawned the idea that "making" subprime mortgages in the first place was somehow an abuse of the poor. It is true that they were charged higer fees and interest rates, but then again, the risk of a failure was significantly higher.
Case in point, the staggering default rate among subprime borrowers. But we should not forget the majority that have not defaulted. They will have achieved a stake in the outcome of our collective American enterprise through the ownership of property. And that's good for all of us.
There have been abuses in the subprime market on both sides, borrowers that defraud lenders and lenders that take advantage of unsophisticated consumers. But let's not make a new rule that lending money to the poor is bad.
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On subprime mortgages . . .
Amidst the recent clatter over the failure of the subprime mortgages, there has been spawned the idea that "making" subprime mortgages in the first place was somehow an abuse of the poor. It is true that they were charged higer fees and interest rates, but then again, the risk of a failure was significantly higher.
Case in point, the staggering default rate among subprime borrowers. But we should not forget the majority that have not defaulted. They will have achieved a stake in the outcome of our collective American enterprise through the ownership of property. And that's good for all of us.
There have been abuses in the subprime market on both sides, borrowers that defraud lenders and lenders that take advantage of unsophisticated consumers. But let's not make a new rule that lending money to the poor is bad.
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