HennaRinse:
The IndyMac collapse displays the worst of Republican policies, failure to regulate. Making high risk loans to borrowers without proof of income was bound to catch up to them.
The Pasadena-based lender was the outright leader in "alt-A" mortgages -- those made to people with decent credit on terms that fell short of prime mortgage standards. Many borrowers, for example, were allowed to state their income without proof. And many of the loans were "pay option" adjustable-rate loans, or "option ARMs," which allowed a homeowner to pay so little each month that the loan balance grew instead of shrinking. IndyMac also made home-equity loans and sub-prime mortgages -- types of loans that have been beaten up badly by defaults.
Yep.
When Repubs are in "power", the predators slink out of the woodwork and have a field day.
Bush's touting of the "ownership society scam" was the green light.
And many people qualified for better loans than they ended up with.
But "riskier loans" being bundled and passed along, made more fast money......but had to "hit the wall" and stop somewhere.
Unfortunately, just like the foreclosure crisis is going to get worse, many other banks are on the brink.
Indy Mac wasn't even on the "troubled list". That's how scary this is. Repubs are ignoring this crisis, and still hiding under their beds at night, thinking OBL is gonna get 'em.
