After the financial crisis, America pointed its finger straight at mortgage brokers and lenders. However, an article in The Motley Fool untangled five common misconceptions about the mortgage industry.
First, mortgage brokers and lenders are not all jerks:
There are two things to keep in mind. First, there are unsavory characters in every profession. There are bad plumbers, mailmen, lawyers, doctors, and, dare I say, car mechanics. And second, as in these other professions, the bad apples generally represent the exception to the rule, as opposed to the rule itself.
"The credit crisis that occurred, although mortgages were the assets that caused the issue, it was more Wall Street's ability to present fancy and dangerous loan products that led to the collapse," said Gus Floropoulos of New York's Quontic Bank. "Realtors, appraisers, attorneys, and lenders played their part, but it seems like the mortgage industry got the black eye for investment bankers' gambling."
Click here to read through the other four.
