Subprime Lenders Getting U.S. Subsidies, Report Says

More debt - great - Wonder why the mortgage lenders and servicers are reluctant to participate? Shouldn't have to think about this one too long. - MBC

http://www.washingtonpost.com/wp-dyn/content/article/2009/08/25/AR2009082502975.html

"...Many of the lenders eligible to receive billions of dollars from the government's massive foreclosure prevention program helped fuel the housing crisis by issuing risky subprime loans, according to a report to be issued Wednesday by the Center for Public Integrity..."

"..."Mortgage lenders and servicers have been reluctant to participate in foreclosure prevention programs despite their role in creating the subprime debacle. Intense pressure from Congress and the White House hasn't worked, either," the report said. "The stick has not been effective, so the Obama administration is offering a carrot -- billions of dollars in incentive payments to lenders and loan servicers to encourage them to participate."

"...report has drawn fire from lenders. It oversimplifies the causes of the housing crisis and misses the complexity of the markets, said Scott Talbott, chief lobbyist for the Financial Services Roundtable, which represents some of the nation's largest lenders..."