The lender is at fault in all three of your scenarios because if money was being lent under prudent, sound lending standards, scenario one and two could never have occurred.

Also, in regard to your 2nd and 3rd scenario, the borrower has no responsibility for the unethical, dishonest behaviors of the professionals in this industry. The so-called professionals are completely responsible for their lack of integrity, their greed and ultimately their part of the blame for CAUSING this fiasco.

The borrower is NOT responsible for the behavior of the mortgage broker, lender, underwriter, appraiser, real estat broker, title officer, bank or Wall Street Investor — the borrower is only responsible for themselves.

And the borrower, any single borrower, in whatever situation COULD NEVER HAVE CREATED THE DISASTER WE ARE ALL FACING TOGETHER AS THIS MARKET COLLAPSES AND WE FACE AN IMPENDING RECESSION.

If you don’t believe it, check out some scenarios I guarantee you have occurred in the past few years:”

You’ve got to be kidding me?

Is your skewed perception and this offer of baseless supposedly true scenarios supposed to mean something?

Look, take a stroll through the HomeOwners forum http://loansafe.org/forum/forumdisplay.php?f=4 and read the stories of REAL AMERICAN PEOPLE and what they’re going through RIGHT NOW, not just in your imagination.

Having humanity, we can treat even the “worst offenders” with dignaty and respect, knowing that all of us have made mistakes and have made bad choices.

You advice that all borrowers should be treated with dignity and respect is golden.

Most of the mortgage brokers/lenders in this country are really good people who want to help people. The small percentage who are all about money do ruin it for us. But the consumer has as much fault in all this as anyone.

If you don’t believe it, check out some scenarios I guarantee you have occurred in the past few years:

1- Consumer calls ethical mortgage broker and says he makes $50k per year, and wants a $400k home loan. Ethical broker says he doesn’t debt ratio, consumer asks about no doc or stated income loans that they heard about. Ethical broker says I can not do those loans for you because I already know your income. Consumer hangs up and calls next broker and says I want to do a no doc loan because I make a lot of money I don’t claim, can you do my 400k loan? Sure they can…6 months later he can’t afford the payments and defaults…who’s fault is this? Obviously the lender, right?

2- I can’t tell you how many clients I tell to wait 6 months to clean their credit up and get a GOOD home loan, then when I call them back in a few months to touch base they DID a loan SUBPRIME at terrible terms…why did they do this?!!? They wanted cash out or some other dumb reason. Some of us can give the best advice in the world, but in the end the consumer has to be held accountable for their choices.

3- If I tell you that your rate is 1% and your payment won’t change..will you believe me? If you say yes, then you are very very very naive (or stupid). Yet people wanted to believe lenders were just giving away money. IF you would have ignored the sheisters by believing in something that “sounds to good to be true” most of the mess would have been avoided.

Don’t get me wrong, some in the mortgage industry did contribute to the mess, but there are far more involved in the values going too high (realtors lieing about 40 offers on a home sound familiar?), consumers WHO DID NOT read their paperwork and wanting to just believe a magic loan existed, lenders, brokers, our government (for allowing BOTH the lenders and brokers to exist without more licensing requirements) etc…

Those types won’t do nothing for free.