Leo123
Diamond Member
- Aug 26, 2017
- 30,700
- 23,594
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Yeah, legislatures like Barney Frank and the Democrat Party who are responsible for those loose sub prime loan programs and 'standards.'Legislators were SCREAMING to have Fannie and Freddie get into the subprime mortgage market because there is so much money to be made on them. That's because the fees are all front end loaded. Lenders fees, brokerage fees, legal fees. I've seen borrowers getting $35,000 on a $50,000 loan. The rest went to fees. Then the lender sells the high interest subprime loan to an investor.
The investor will pay $50,000 face value for the loan, because of the higher yield on the money and a supposedly secure loan.