Quote:
Originally Posted by centex
As a result of the perversion of the process, too many people were able to artificially inflate their scores and get into houses that they subsequently defaulted on. And while the AU process was not the only contributing cause to the mortgage meltdowns, they played enough of a role that SOMEONE has to get a handle on the scams that run/ran rampant.
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The reality while all the finger pointing is going on is that debt to income ratio should be the MAJOR factor in determining an ability to repay a mortgage. All the bastardized AU accounts in the world will not change that number. They only increased scores - those 3 digit little numbers that drive our world today. If purchased AU accounts were the evil incarnate that drove the lending industry into the toilet then someone is not thinking logically. Scores would be increased LOWERING the likely interest rates. One could argue those in the sub-prime market took little or no advantage of the AU loophole, and thus find themselves on the wrong end of foreclosure proceedings today.