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Why haven't the people who benefited from sub-prime loans been made to fix their mess or been been put in jail?
Wiki User
∙ 15y ago
If you are referring to the people who got the mortgages and loans, it's because they were given mortgages and loans according to legal contract. There is no reason to put them in jail and they did not create the mess you are referring to. The people who created the mess are the bankers (especially those who control the Federal Reserve) and financiers who lobbied for changes in laws and banking regulations and then took advantage of the situation and wrote loans that were inherently dangerous in exchange for short term gain. If you are referring to the bankers and financiers who actually created the mess (by the way, they are raking in more dollars now because of the "bailout") it's because they are so politically and economically entrenched that the government itself is afraid of them. The only way to fix this is to restore constitutional law in this country and start electing legislators who are responsible to people, not corporations. A mortgage loan is a special kind of loan where the liability of the loan customer ends the moment he hands over the property to the bank (In most cases) this the bank knows when it granted the loan to sub prime customers. When the customers felt there was no value in repaying their mortgage they simple surrendered their property (Home) to the bank and walked off. The bank cannot take any legal action if they surrender their property. This is why most of those people have walked free...
Wiki User
∙ 15y ago
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Are they doing any subprime loans anymore?
are they doing subprime loans anymore
Where can one get current information about subprime auto loans?
Subprime auto loans are loans taken out by individuals with poor credit records to purchase automobiles. Information concerning subprime auto loans can be found on finance specialist websites such as Edmunds.
Why are people critical of subprime loans?
People are critical of subprime loans due to bad loans being given out (arguable causing the recession at least in part) and general loss of faith in the financial and government systems regulating them due to corruption, scandals, and at best gross oversight.
How can one obtain a subprime loan?
Subprime loans are offered to individuals with a credit score below 620. Such prestigious financial organizations as Chase Manhattan, BankOne, and Wells Fargo have begun offering subprime loans.
What are the services offered by sub prime?
"Subprime refers to financial material. The subprime category offers student loans, mortgage loans, and automobile loans. The subprime topic is very diverse and confusing and thorough research should be completed before making financial decisions."
Does Respa apply to subprime mortgage loans?
Yes.
What bank offers personal loans to people with bad credit?
Numerous banks offer loans to people with subprime credit. Trying also to check with your local credit union.
What is a subprime lender in the world of finance?
A subprime lender is one who gives loans to people who may have difficulty maintaining the repayment schedule. These loans often come with higher interest rates. Some companies that provide this service include American Credit Acceptance and AutoTrakk.
What caused high default rates on subprime loans?
Loans were made to people that did not have the ability to repay the loans, coupled with lack of adequate collateral for the loan. When the value of real estate dropped, and people owed more on the property than it was worth, they defaulted on the loans.
What is the average rate for a Subprime Home Loan?
Subprime Home Loans are for people who have a poor credit history. Therefore the rate depends on personal circumstance, how long the loan is for and what the credit history of the individual is like.
Did Clinton make the banks give subprime loans?
no, encouraged maybe, but not forced.
Where can one obtain sub prime loans?
One can obtain subprime loans by first talking to experts at a bank for more information and a course of action. Many companies offer subprime loan options. One of these companies is Bankrate.
