Mortgage Bankers, Brokers Pointing Finger Of Blame At Each Other For Subprime Woes

The Associated Press reports:

• "The heads of trade groups representing mortgage bankers and brokers traded barbs Tuesday over who's to blame for the housing market's woes. The head of the mortgage banking industry's trade group claimed brokers profited from a home loan boom but didn't do enough to examine whether borrowers could repay."

In response, the head of the National Association of Mortgage Brokers reportedly said,

• "It is truly unfortunate [Robbins] has attempted to shift blame away from Wall Street, federally chartered banks, state-chartered lenders and underwriters for the subprime situation we find ourselves in today."

The mortgage broker head also added that, based on the testimony at congressional hearings, "most residential mortgage loans are quickly sold into the secondary market -- in fact most lenders are really just brokering the transaction but afraid or ashamed to admit it." For more, see Mortgage bankers, brokers squabble (Each blames other for subprime woes) (Chicago Tribune)