Criminal enterprise

When did mortgage lending become a criminal enterprise?

Some lenders are aggressively pitching loans to seniors who cannot afford the fees associated with them, not to mention the property taxes and maintenance. Others are wooing seniors with promises that the loans are free money that can be used to finance long-coveted cruises, without clearly explaining the risks. Some widows are facing eviction after they say they were pressured to keep their name off the deed without being told that they could be left facing foreclosure after their husbands died.

In a market characterized by asymmetrical information, the layering of the industry allows conscienceless, high pressure salesmen to fool their marks into taking on more risk, without the constraints of putting their own money at risk.

Then again, the secondary market for mortgages is filled with players who are just as savvy as the high pressure brokers. These investors know their interests are protected by foreclosure, so they don't care if the mortgage is sound for its intended purpose. Win-win!

Maybe it's always been this way.