Letters to the Editor

Re: 'Taxpayers shouldn't bail out homeowners' (Sept. 25)

Dear Editor:

How about taxpayers shouldn't bail out the INDUSTRY that had a big hand in CREATING the housing bubble with its predictable result?

It wasn't home buyers who created toxic loans and pushed them, it was the industry. It wasn't home buyers who approved the loans, it was the industry. It wasn't home buyers who packaged bad loans and sold them to investors, either ... it was the industry.

While some home buyers were foolish and some may even have been complicit in fraud, most home buyers were simply not well-enough-educated about mortgages and scams to recognize what they were signing. Some were defrauded. Let's not kid ourselves; this bailout is for the industry, including those who were committing fraud.

I find some really interesting hypocrisy in all this. First, home buyers who are supposedly so stupid for signing these toxic loans were apparently smart enough to have created them, and without any help from the industry. Second, home buyers are expected to have a higher level of financial understanding than the "professionals" in the industry, in a society where we have no formal financial education in most public schools, much less a degree or training in being mortgage brokers, etc.

Last but not least is the hypocrisy of an industry that created an artificial bubble and appointed itself the savior of the economy post-9-11, but is not stepping up to the plate to take any blame for the crash. This industry said, "Keep the government and regulation out of our lives," when there was a justified call for stricter oversight of this industry due to bad loans, etc. But when the industry insiders lost their source of income, it was the industry who wailed loudest for the nanny government to come bail it out. Homeowners are unlikely to benefit (in the bailout), and thousands have already lost a great deal, some of them victims of outright mortgage fraud.

This crash was predicted years ago by consumer advocates and others. Everything from unwise practices to criminal activity was pointed out. The industry and government chose to look the other way when it was "just consumers" getting burnt. Only when investors and banks started to cry was much attention paid to the problem, or any bailout proposed.

Cindy Schnackel
Homeowners Against Deficient Dwellings
Norman, Okla.

All rights reserved. This content may not be used or reproduced in any manner whatsoever, in part or in whole, without written permission of Inman News. Use of this content without permission is a violation of federal copyright law.