Sub-prime mortgage crisis or greedy disaster ?

The current Sub-prime mortgage crisis is due to greed and weakly regulated mortgage industry. This problem that plague's families all over the US was brought on by very unscrupulous mortgage brokers, all seeking high commissions. The favorite tactic (No Questions Ask Type Policy) used by them was the Hybrid-Adjustable Rate Mortgage(ARMs). These type of mortgages "balloon" after 2-3 years to a much higher interest rate. Many borrowers didn't know about the rates adjusting after 2-3 years. Still more were told they could refinance before the rate adjusted and then denied the chance to do just that by mortgage companies. Many who had difficulties making payments found unexplained fees added to their bills.

Sub-prime Mortgages carry a higher risk of default by the borrower than other kinds of mortgage lending. The scarier thing is 1 in 5 US Mortgages fall into this category. Still many who tried to get information when their home when into arrears had difficult times with lenders.

The Sub-prime mortgages companies and investors collectively own $1 Trillion in sub-prime debt. With the credit crunch hitting the nation it's no wonder that record numbers of families are losing their homes. In fact the first 8 months of 07 had 1.7 million foreclosures. The number is expected to climb by 2 million more foreclosures by 09. This is stripping American families of wealth and destroying whole neighbourhoods. The disaster is to the families screwed in the name of the ALMIGHTY DOLLAR. Not to mention the cities that have to clean up the neighbourhoods of condemned homes and crime at their own expense(taxpayer money).

I think the solution to the problem is the unscrupulous mortgage brokers and their greedy sub-prime mortgage companies should be held accountable for all the deceptive policies used to trick people into mortgages. The government needs to do away with sub-prime mortgages and have these brokers and companies make good to all the families screwed over by them. First all loans not in default need to be refinanced at fair rates and all later fees credited and any lost annuity due to decrease in home value should be payed back to the borrower. Second the people who lost their homes need to be put into a new home and given a fair rate and debt forgiven. Last but not least the mortgage brokers need their ability to work in the mortgage industry taken away and fined 10% of all the commissions made from ARMs. The mortgage companies need to be fined 25% of the profit made from ARMs. I think that all this greed has gotten out of hand, where is the ruler to pop the collective hand of the sub-prime mortgage companies.