Mortgage lenders failed to learn
In the real estate section of the April 27 Herald was an article about loans. The crisis we are in now was mainly caused by financial institutions. Only here in Marysville are hundreds of foreclosed homes, bank-owned homes, HUD-homes; misery for thousands of people for a big part caused by mortgage providers giving people too easy loans.
Still they focus on "credit score," pushing people to take out loans and use credit cards! That's how people got financial problems in the first place! The focus should be on people's income and future income!
I have a very good pension until the end of my life; no debts, no loans -- a perfect credit score in Europe; but being a new immigrant, of course no credit score here! Though I would have had not have problems with payments; without a credit score there is no home-buying for me! I did not expect that banks have not learned much and even think they live on an island here.
Pushing people to take loans and using credit cards will cause more problems.
Except for home-buying, what is wrong in with the "old-fashioned" saying: "If you can't afford it, don't buy it."
Johannes van Hijum