>>> Seth asks:
> [...] why these people wouldn't give a black guy a prime mortage ...
It's not really up to them anymore, it's up to FICO. Count that in a good column. But I do think that near the end -- especially after the
early part of 2005 -- poor areas were targeted and sold a bill of goods
by vultures. Whether that's a racist conspiracy or not, I couldn't say.
/jordan
^^^^^ CB: I'm certainly willing to believe the poor areas were sold a bill of goods. But I have one aspect I can't think through. Wouldn't it be highly likely at the time these loans were made that many of the poor people would default on their loans, and so the vultures would not collect the loans or interest ? It just seems like the vultures ( and I'm as willing as anybody to call them vultures) were , uhh, dare I say, doing sort of welfare work. I'm thinking somebody had so much money, "extra" money, that they couldn't find any other investments for it, or what ? What am I missing ? Ok the interest rates are higher on subprime loans ,but the interest doesn't get collected in a default , does it ?