Financial Crisis, Whose to blame? From an ex loan officer

There is one person, probably an employee of Fannie May or Freddie Mac, who
approved a change in qualifying borrowers for ARM home loans.
First a Quick Primer An ARM (Adjustable Rate Mortgage) is a loan where the
interest rate is tied to the economy with an index. So in bad times you
might pay 7% and when the economy is booming you might pay 11%.
This sounds innocent enough, but too sell people on ARM loans lenders offer
an introductory rate below the actual rate of the loan. So a 6% ARM might
have a 4% rate for the first 6 months payment. Then the index kicks in with
a 2% cap on raises and a 6% overall. Sounds small write, I can make that,
Right!
For a loan of $250,000 your payments are;
First 6 months (4%) $1193.54 / Month (Less than renting)
Second 6 months (6%) 1498.88 (Fine for most double income families)
Third Six months (8%) 1834.41 (Crunch time)
Fourth adjustment (10%) $2193.93 (My god !!)
And the final (12%) $2571.53 (the Homeless)

Now no one in the right mind stays in an arm as interest rates rise. You can
see that the cost of a Loan $2000 - $4000 would be recovered quickly in a
Fixed at $1748.04
In the past to get a loan you have to qualify for the loan. Your income and
liabilities are checked to evaluate your ability to pay the loan.
Traditionally the loan payment had to be less than 39% of your monthly gross
income and with taxes and insurance less than 33% of your net. (Includes
credit cards and car loans, alimony, etc ...)
The change was that traditionally you had to qualify at the 6 month rate for
an arm loan, but they started accepting borrowers qualified at the
introductory rate.
These people should never have gotten a loan. And the big guys Like AIG et
al should never have bought the loans.

This is all the Insanely greedy, frustrated by not making their insanely
gross profits on the backs of the ignorant. Stop giving the Banks money!!
Buy the houses from the Defaulters and then sell them to people who can
qualify for the loans.