Am I to understand that you think it is Ok for a large corporation to get a thousand experts together and plot and scheme a program where they can make loans to people who desperately want a house, even though they know that a very high percentage of the borrowers are very ill-equipped to ever pay the loan, now, or when the rates go way, way up in 2-3 years?
Sounds a lot like rainmakers of old, miracle Indian medicine in a bottle, roof painters with colored water, The Travelers, and anyone elected to Washington D. C.
I expect more from federally backed banks, and frankly most of it is illegal. It is just that the justice department and bank examiners do not know how to handle it now due to maybe a catastrophe occurring now.

Which law is it illegal under? Do they go out and force people to take these loans? if I offer to sell them a loaf of bread for $7.00 and they can buy it at Kroger for two dollars and they buy my bread anyway is that illegal? Dumb yes, but not illegal. How many loaves you want?

I yam what I yam....Popeye

if these "carnies" approach people with the old..."Own a piece of the American Dream."- pitch, are you blaming the buyers by getting suckered in for wanting to attain the level of homeownership "promised" to all Americans? I know, you are going to say "Yeah, I blame them for not wanting to work for it!" But what if they ARE working for it? Deregulation of the banking industry is the culprit here...deregulation that allows lending institutions to partake in these practices. (Can you say "Great Depression" here?). Keep the faith

Democracy is not a spectator sport.

Countrywide is notorious for targeting people whose eyes are bigger than their wallets. They target people who want "McMansions" the only problem is the only way these people can afford the lifestyle of the rich and famous is with an interest only mortgage, or jumbo loan.

They take advantage of the "I wish I was somebody" crowd.

You must be a real psychic to know what I'm going to say. I just asked the man what part was illegal, maybe you can tell me. I don't care if they work for it or not, but if they do something stupid am I supposed to bail them out? When I bought my house, I qualified for a much larger home then I bought, should I be penalized for that. Let me throw out some figures that are purely fictional , if I make 50,000 dollars a year and my credit card and car payment and utilities and food and recreation and everything else costs me 35,000 dollars a year and I go out and buy a house that's going to cost me 18000 a year in house payments if the interest rate stays the same isn't that dumb? Here you have someone making 50k a year goes to work every day, I don't fault him for that, but if my taxes have to go up to help keep him in a lifestyle better then mine, is that fair in your book? Now did I say what you thought I was going to say? In the future I would appreciate it if you wouldn't put words in my mouth and I won't put them in yours.

I yam what I yam....Popeye

I apologize. I am not much in the way of a psychic, and all the practice hasn't helped either. Keep the faith.

Democracy is not a spectator sport.