Subprime Mortgage Abuse Continues

Will they ever learn? The subprime vultures just won't quit:

"At a Senate subcommittee hearing on ending mortgage abuse this week, the Center for Responsible Lending (CRL) presented its findings on subprime loans included in 10 recent packages of mortgage backed securities."

"'A lot of the terms that make these loans so dangerous are still being used,' said Keith Armstrong, CRL's senior policy counsel. 'We had been told that these things are going away.'"

You can't teach an old dog new tricks? How much worse will this get? When will people finally learn their lesson? This new development is indicative of the fact that we've only just begun the shakeout; in fact, as long as the practices continue, the problems will continue.

The impression left from the last six months of subprime lenders becoming subprime companies wasn't really an impression at all.

"According to Doug Duncan, chief economist for the Mortgage Bankers Association, troubled lenders are aggressively making new loans for an infusion of cash. 'They're gambling,' said Armstrong, 'doubling down and that's a recipe for disaster.'"

Gasp! Gasp! The mortgage industry is running out of breath. They're desperate, and their desperation is producing ugly results. Where will it lead our economy?