Fallout from lending practices
Re “Easy mortgages put Irvine lender in a house of straw,” March 18
Just look at the damage that mortgage lender New Century Financial Corp. and others appear to have wrought: people losing their jobs and homes, investors losing their investments, unsustainably high home prices and on and on. Of course, the perpetrators are scot-free with much of their gains (ill-gotten?) securely salted away. Do we have another WorldCom or Enron brewing? With the relatively minor donations that the perpetrators made to hospitals, schools, etc., it sounds more and more like Ken Lay, Bernie Ebbers and their ilk.
WILLIAM G. OSBORNE
Re “Sub-prime time,” editorial, March 14
One point that the editorial fails to mention is that the lending industry’s goal is to make money, not to help people. Even with the number of foreclosures on the rise, it is not going to change the minds of the companies in the lending industry. They are still going to try to come out with a loan that will make them the most profit possible. Of course, they need to release a product that also looks good to consumers so that they can stay competitive with other companies -- but at the same time will be a product that they will get very rich from.