The banks were free to do what they wanted because Republicans were the majority party. Try to get that straight, pachyderm.<quoted text>
What I find hard to swallow is when the government tries helping those people with bad credit histories get a mortgage. Why?
So your good buddies, the banks, made out predatorial loans. They did this by first getting the customer's income and means from the application form. Then they figured the payments that would cause default. OUTCOME = Banks keep payments + house.
Several major banks are currently under investigation for these practices. Let me emphasize, no one forced the banks to lend money or act like crooks. They did it on their own initiative.