Wall Street Changes Dynamic

Wall Street Changes Dynamic

Subprime loans weren’t made to fail. Nevertheless the loan providers didn’t care if they failed or perhaps not.

Unlike old-fashioned mortgage brokers, whom make their funds as borrowers repay the mortgage, numerous subprime lenders made their money in advance, because of closing expenses and agents charges which could complete over $10,000. The lender had already made thousands of dollars on the deal if the borrower defaulted on the loan down the line.

And increasingly, loan providers had been offering their loans to Wall Street, so they really wouldn’t be kept keeping the deed in case of a property property foreclosure. Continue reading «Wall Street Changes Dynamic»