Would also like to add that many LOs are definitely to blame and the industry is fraught with shady practices but I don’t believe for one moment that the consumer wasn’t a willing participant in this scam. Yes, a small minority may be true fraud without the knowledge of the consumer but in most cases the consumer knew something shady was going on but didn’t care to know…they just wanted the lower payment. Now they act like they are the victims and the LO is the bad guy? No, they are BOTH criminals equally!!
If you earn $40,000/yr and the LO is giving you $1200/month payments on a $600,000 home with zero down, does anyone on this earth believe those numbers actually work for the entire life of the loan? There isn’t anything shady in this deal? Or perhaps I am overestimating the intelligence of the American people. Perhaps many in our country don’t even understand basic math! Oh the humanity!!!
