There has been plenty of talk about “predatory lending,” but “predatory borrowing” may have been the bigger problem. As much as 70 percent of recent early payment defaults had fraudulent misrepresentations on their original loan applications, according to one recent study. The research was done by BasePoint Analytics, which helps banks and lenders identify fraudulent transactions; the study looked at more than three million loans from 1997 to 2006, with a majority from 2005 to 2006. Applications with misrepresentations were also five times as likely to go into default.will the lenders who were bilked out of their money get any help from the gubmint? or will unreason prevent them from being seen as victims? i'm not sure i care. maybe they should have done a better job of vetting the applicants. i can say the same for people who overextended themselves, possibly trying to get rich with someone else's money. still, i'd like to see some outcry directed at the assmonkeys who made it more difficult for the rest of us.
15 January 2008
who gets gubmint protection?
as Tyler Cowen points out over at the NYT: