Some People in the Subprime Loan Trap Qualified for Better Loans

This is what an unregulated lending market gets you, people with good credit steered toward sub prime loans because the lenders made more money that way.

According to the WSJ article, 55% of all sub prime loan borrowers were qualified for prime loans.

The brokers make big bucks over this.

This is a legacy of Republithug philosophy....The idea that, unfettered by regulation, sophisticated players will be honest.