FHA Book

Sub-Prime Not Giving Up…For Now

According to a televised report on MSNBC and an accompanying article on MSNBC.com, the sub-prime mortgage industry isn’t ready to give up yet. Even with the collapsing market, there are still advertisements for sub-prime loans that offer the so-called teaser rates. The legaltily and ethics of the situation are both questionable.

“There’s nothing necessarily wrong about lending money to people with bad credit,” said David Nahmias, U.S. attorney for the northern district of Georgia, who has worked on mortgage fraud cases. “Our concern is more the independent mortgage brokers who will try either to trick people into purchasing properties they really can’t afford, solicit those people to lie, let them use their identity or credit so they can perpetrate mortgage fraud.”

Missing from the report is how FHA is an honest option for those with poor credit. Unfortunate.