I’m shocked, really, to find out that refinancings are the lion’s share of these subprime loans. What were those homeowners thinking? Wow!
Real estate professionals can be in a position to help keep borrowers from getting locked into bad loans, but since the lion’s share of these loans are refinancings, real estate professionals typically don’t have a chance to intervene, said Keith Corbett of the Center for Responsible Lending. ” The gatekeeper to the subprime market is the mortgage broker, making recommendations to borrowers, and mortgage brokers are among the least regulated participant in the marketplace,” he said. [emphasis added]
Of course, I’m been harping on the lack of regulation in the mortgage industry.