You must understand that the subprime mortgage has been around a long time, they do not just pop up in the late 80s and early 90s. This mortgage product type was before the 70 years of age.

Minorities are particularly targeted for subprime mortgages.

These loans were also from individuals, which lasted start a business as most of them did not take long for the treatment of end was won over.

So they had those higher levels of these elements, boats, jet skis, cars, investment properties and other risks, or buy in some cases, solid investments wanted. Again, the reason, less paperwork and time was needed to complete the process.

Are there minorities who get these subprime loans? Yes, it was because when Barney Frank, Maxie waters and all their friends in the Congress believes that every American should own a home.

It is irrelevant whether they could afford to pay the mortgage or not, so they could own a house.

I worked for a large subprime lender in the database management in Orange County, California. We were asked to complete a report to the Government provide information on the number of minorities that we have done for mortgage, income levels, as were the percentage of minorities on the number of loans we have done months basis. If not our percentage of minority loans affected, we have the place of training with the understanding that we will not be able to obtain funding for mortgages, to come, if we are not given in line for the month.

Some donors have no loans to minorities or those from minority groups were considered if they have not been punished in line.

These subprime loans had a low fixed rate 2-5 years, after which they returned a mortgage with variable interest rate.

The owner said he had to make his monthly mortgage payments on time, and if they did, as the correction for the mortgage they got into the current fixed rate refinance for 30 years was because the house would, therefore, would be the value of the refinancing no problem.

This time there was a catch. Property values have not appreciated that in the past. Since the property has not the lack of fairness, in which the homeowner to refinance the mortgage can estimated.

As the mortgage on a setting interest rates to settle somewhere between 3, 6 or 12 months, the owner was not in a position was adjusted to keep the monthly payments.

The result was because they were not able to make the monthly mortgage payments were in the amount of unusual properties then placed into foreclosure. This growth has attracted the attention of Wall Street, because now they have titles that do not earn more money are, for its investors.

Then our government decided to rescue banks.

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