10 Apr 2007 08:19 am
Mortgage woes could be ‘tip of the iceberg’
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As hundreds of billions of dollars worth of these loans “reset†to higher monthly payments, many so-called [tag]subprime borrower[/tag]s — historically those with shaky credit histories — are sitting on financial time bombs. They’re finding out the hard way that the paperwork they signed may have buried them under a crushing debt load they can’t sustain. For some, the lesson learned is: “buyer beware.†But a series of interviews with subprime borrowers, mortgage lenders, appraisers, current and former regulators, and the inspector general of the Department of Housing and Urban Development paints a different picture — of a widespread pattern of questionable lending practices and outright fraud that has already sparked a wave of criminal and civil actions against various players in the $10 trillion market for [tag]residential mortgage[/tag]s. |
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