“Sound banking saved Canada”
“In conjunction with Wall Street investment houses, lenders created the increasingly risky loans designed to help Americans realize the dream of homeownership, giving birth to such questionable practices as no or minimal down payments, no income documentation and the deferral of principal and interest payments for years on many loans — making them unaffordable when they reset to reflect market realities.
‘That was the genesis of this crisis. Americans were able to take out mortgages that they had no ability to pay back,’ said Sen. Bob Corker, Tennessee Republican, who offered an amendment to the Senate reform bill that would have set into law minimum loan standards much like those in Canada.” Read more.
Patrice Hill
Washington Times, May 31, 2010.
Image by Bill Longshaw / FreeDigitalPhotos.net.
