The ""foreclosure-gate"" and ""fraudclosure"" banking practises came under scrutiny. Americans began to learn that realtors had been collecting enormous commissions and illegal lender bonuses while numerous mortgage brokers in the background were turning a blind eye to the underwriting of inflated income levels, phoney home appraisals, etc.
What follows is history.
Eventually, a bigger lie came to light: the banking sector knew there would be a lot of subprime loan defaults and that they would make money either way. Nothing but the names have changed in 2014, despite the rising awareness that sub-prime loans were nothing more than a source of profit for the banking industry and not the little person!
Wall Street bankers continue to operate, and the government still approves sub-prime loans, albeit now disguised as auto loans. The headline of this story from October 7, 2014, ""The New Sub-Prime is in Auto Loans: One Third of All New Auto Loans are of the Sub-Prime Variety,"" pretty well sums it up. Repossessions have increased by 70%. The text continues,
""""What is telling in this situation is how much of this debt growth took place during the economic recovery. Why are so many loans being made to people with terrible credit if things are going so well?""
Well said! Shaun Donovan, the then-secretary of Housing and Urban Development, stated on ABC News Today almost exactly four years ago that there do not appear to be any ""underlying systemic problems"" with housing foreclosures. Donovan was referring to his review of foreclosure-documentation-issues of specific lenders and banks who may not have followed the rules. His ""bad apple"" philosophy is, however, wholly untrue. The surge in sub-prime vehicle loans and the inevitable rise in repossessions are only the dying breaths of a financial system that is bankrupt and overburdened with debt: a vampire-like, self-serving effort to survive at the expense of its victims.
Given everything they lost in the economic collapse of 2007–2008 and their limited time to make up for it, Baby Boomers are in the most susceptible position for taking on new debt. The best recommendation in current environment is to reduce your debt and diversify your sources of income. If you don't want to end up as another New-Normal statistic, that is. Finding and implementing age-appropriate cash-flow activities is the key to ensuring financial security in later years. ReinspirementTM, not retirement, is the key to navigating the current economic climate.""" - https://www.affordablecebu.com/