I was in the mortgage business for 15 years as a regional manager with a company called Countrywide, at the peak of all this nonsense they were giving large incentives to loan officers, branch manager and area managers to keep borrowers from regular conventional loans. They would require us to push the creative financing loans. There was not enough money to be made in conventional loans, as a result they came up with option arm, arm loans and similar products to entice borrowers into getting a loan they made them think they could afford.
Does anyone remember the print ad, phone calls, TV advertizing and mailers letting people know that they could borrow money on their present home or easily get qualified for 100% to 125% loans because values were skyrocketing. I received phone calls from many companies offering me money for more than my house was worth and that I would easily qualify for what I needed. I knew the scam and didn’t buy into it.

No, it was not a gun held to their head but a carrot on a stick that was put in front of you every day until you were ready to take a bite.

Banks did not lose money on this fiasco; it is us the tax payers and investors who are paying for it now. While the fat cats are laughing all the way to the offshore bank. Any jail time spent?

This is a mess that will last a long time, but as usual will be forgotten and repeat its self. Human nature.

I was fired from Countrywide for not meeting my goals (never did an option arm), I saw through the smoke screen and used my knowledge to help people understand lending practices and make good decisions.

The Clinton's created this mess but, it all started with Theodor Progressive Roosevelt.

I too saw mortgage brokers and agents during the market peak pushing their clients into bad loans and homes they couldn't afford. The property will appreciate, you'll make more money later on, this is a good deal, blah, blah, blah... I was appalled. I think most of those buyers are in trouble now. While I don't feel sorry for the investors or the show-off McMansion buyers who got caught when the bubble burst, I do feel for some of thes first time homebuyers who were not that savvy about the process. Ultimately, they did sign the loan docs but they relied on their agents advice. I always tried to get a sense of my clients financial situation and discourage them into getting into something they would regret later. With my 10% down buyers, I tried to show price points where the mortgage payment was fixed at least 7 years (advised 10 years) and their income relative to payment was high. This was during the heyday. I knew there was a bubble coming, especially living through the tech bust.

The only mess Mr. Clinton created was in his personal life, and even that was not his fault. Clearly that intern used him, why would she save a stained dress? Maybe he should have offered her a few bucks to cover a cleaning, but that would have made her look cheap, he was trying to be a gentleman.

I blame the borrower. As somebody else commented if the boom continued nobody would be passing on their profits back to the bank.

comment edited/self deleted prior pushing the Submit button.

Not directed at you Dayton, just an observation on my part.
Buyer puts 3.5% or less down. Perhaps they've moved from a 3 family to a nice single family, picket fence, etc.
They pay a reduced rate for about a year (less then rent). The rate adjusts after a year and they stop paying. 1 to 1.5 years later they're evicted. They've lost it all...poor folks. Their 3500 down payment is down the drain. Or is it offset by the 5000 CFK they received? And we'll cuss out the lenders for placing them in that position?? WTF. Regarding the year plus of no payments...The average time line from default to eviction is 592 days, close to 2 years. and a bonus check at the end. Raise you hand if you wouldn't like almost 2 years with no housing costs.
Maybe some folks would consider the real fools here are folks like me. 60% down payment, all payments on time, work every day and, silly me, I live within my means.

Yes there are some real hard stories out there, death, job loss, sickness, divorce and such and I do feel for these folks.
What I don't feel for are those described earlier.

What ever happened to personal responsibility?

As long as Americans demand instant gratification, this won't stop.
$2500 Big Screen TV -- No problem, 24 easy payments
Need a New car -- no problem, 84 easy payments
Need a new house - no problem, 360 easy payments.
Need cash -- Get a cash advance on your credit card

Do you see a pattern here?

Jack's comments hit me in the liver. I do what I need to do to meet my obligations. I have three teenagers and what really grinds me is that we see the profile that Jack and Roadkill illustrate, add in vacations, nice cars etc and the kids are hurt that we don't have all the things that these others have. People I "know" are in beyond deep and still adding to the tab. I'll keep going to do what I have to do, but I'm wondering about the next generation in my own house.

With that spewed, get out there and make some honest $$$$ today people, it's not everything, but it helps!