I get a great market update from SCME bank every morning that gives me about a 5 sentence update on major market events and reports and how they affect interest rates on mortgage loans. At this point, there is a lot of uncertainty in the markets due to a number of factors. First, we have oil prices that are sky high compared to what we are accustomed to here in this great country. This affects every industry and every person that does not live in a 100 square foot shack in the hills on Montana. For a number of reasons, this giant increase in prices has not thrown the economy into a tailspin. We have started to see a pretty major shake-up with the big and small sub-prime mortgage lenders which have become the poster child for the media and Congress. Nobody seemed to care how people, who had no business getting loans, were able to buy houses with no money down when the real estate market was appreciating at high double-digit rates. Now that most markets have come back to reality, we are starting to see the effects of these insane lending practices. Each day, Wall Street investors (those who make the funds available for the vast majority of home loans in the US) have been shrinking their appetite for non-traditional loans. This has translated into less ability for people with not-so-great credit, questionable income, and little to no equity to find a loan. Since many of these people cannot afford the mortgages they put into place, they are now in a world of hurt. Trust me, I talk to them every day.

At the end of the day, people like to point the finger and blame someone. It seems that this has become the American way, find the blame and single the person responsible out. The bottom line is, when you borrow money from a bank or individual, YOU are the one that is responsible for making sure you understand all of the terms of the agreement between you and the lender on how the loan is to be re-paid. If you are so dense and incapable of understanding the terms of the loan, then you have no business entering into such an agreement. People need to take responsibility for the things they do and move on. It is not about Congress having people like Jessie Jackson testify in front of congress saying how the lenders and mortgage brokers of the world are to blame. I am pretty sure that the esteemed Reverend cannot find one person who was forced or coerced to sign the loan documents for their home.

I wish that everyone could own a home. That everyone could afford to make their payments. Unfortunately, things happen. People do things they shouldn’t. You live and you learn. It is up to each one of us to take responsibility for the things we do, good or bad, and not try and pass the buck.

tags: lending, loans, mortgage, sub-prime