Hi Everyone,

When the topic of blame comes up, lots of us in the mortgage lending industry always seem to want to point towards someone else instead of taking a look at our own role as loan originators, processors, underwriters, and so forth.  One thing I constantly hear is how it was the fault of Fannie Mae and Freddie Mac for lending money to subprime borrowers. First of all, Fannie and Freddie don’t lend money and second, that myth has already been debunked here and here.

Michael Bloomberg publicly blames Congress for passing laws encouraging Fannie and Freddie to do the same.  Read how ignorant that position is right here.

Others blame the Community Reinvestment Act saying the Act forced banks to make mortgage loans to subprime borrowers. Sorry folks, the CRA has been around since the 1970s and is not to blame for the real estate bubble and the meltdown.  Read why here. Most of the subprime loans made were originated by people not subject to the CRA.

It’s beyond time to stop blaming others and to take accountability for what we can do as a collective group of individuals so we can move forward.