Everyone with common sense knows that the reason for so many bad loans being granted in the first place was that banks were forced by the government to give proportional loans to all people, including minorities or risk being fined and even imprisoned. The result is that banks went over-board , paranoid about being sued by class action lawyers and minorities. A flood of bad loans, and the hens are coming home to roost a few years later. Not surprising that it happened. Now our economy is going to tank to appease the lawyers and to put undeserving people in expensive homes.
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Jen,
I am not saying that only minorities are defaulting. But as you know, when the vultures (layers) and regulators (Gov't) are watching every move banks make like a hawk, the banks will overcompensate and issue loans to MANY people who don't deserve one, whether they are minority or not. For example, suppose you would get fined if you didn't shovel the snow off of at least 80% of your sidewalk. You would not stop at 80%, you would shovel the whole thing and even expose some grass, just to make sure.