Monday, September 17, 2007


The lenders have made mistakes. Some did not disclose to borrowers the full amount of a loan payment once the adjustable rate increased. Others did not verify the income or assets that borrowers stated that they had. This has caused borrowers to default on their loans and it's never a good thing to lose your house. However, the percentage may not be as big as what the media suggests. In an article by Ben Stein in The New York Times, he states, "The percentage of those who have defaulted is still fairly small, possibly 10 percent to 15 percent of subprime loans, and maybe less. (And subprime mortgages are very roughly 10 percent to 15 percent of mortgages.)" That means that there were a lot of less-qualified borrowers who are able to achieve their dream of home ownership because of subprime loans.

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