Submitted by Randi, Mar 15, 2007 17:41

"The lenders who tossed thoughtful human risk assessment in favor of credit scoring and automated underwriting, are paying the price for the mistake."

That said it all. The thought of someone being able to afford something seems to have been tossed out the window. I've got a great credit score, but my $55K salary just can't make a $350K mortgage payment.

I think the author of the article is missing the point that these subprime mortgages really hurt our economy. The borrower is in worse financial shape then they originally were. The cost of prime mortgages will increase to offset the losses of subprime mortgages, hitting the pockets of those who can afford mortgages. And it continues America's dependence on debt, which leads to our dependence on foreign markets floating our treasury bonds and decreasing the value of the dollar.

It just doesn't make any financial sense.

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