Yet when the times where good, Lenders paid their loan officers money just to refer a prime borrower into these horrible Subprime loans. The loan officers made much more money on the subprime loans than regular loans.
* althought I work for a bank. I didn’t know that the subprime loans were often the ARM products for 6 months. 1 yr, 2yr. etc. and they could go up by as much as 10% for that 1st change. I can also tell you that Lender often pushed loan officers to do whatever it takes to get the borrower to trust you.

There is a lot of info in this article but sadly it doesn’t cover the cost to the community when a person is put out of their house. That person might go into a deep depression, unable to work, living on the street.. then if they have kids.. the kids are living on the street.. now have emotional issues, start failing in school. if they are high school age, they maybe drop out and get into crime. There is great cost to a community when homes are foreclosed on.