Thanks to http://housingpanic.blogspot.com/ for the source of this quote.
This is great quote. Read it and just let it sink in for a moment….
“The entire real estate debacle is the fault of everybody that was involved. And it was all about greed and speed,” said Rachel Dollar, a Santa Rosa attorney who represents lenders in fraud and other cases. “The brokers wanted their commission. The lenders wanted their premiums. The borrowers wanted their homes.”
(Emphasis added by me). The direct source of the quote.
I love the way Ms. Dollar (sometimes this stuff just writes itself!) uses the word “everybody”…. Let me add some more people who need to be included in the “everybody” category…
- Real estate attorneys received payment for their closings;
- Newspapers received increased real estate advertising revenue;
- Home appraisers received payment for their (ahem) valuation reports;
- Home inspectors received payment for their services;
- Homeowners insurance companies received premiums (and still continue to get paid) based on inflated real estate values (which were required by the lender to fund the loan);
- We can add insurance agents/brokers to the line above as commissions in large part are based on the gross premium paid by the homeowner;
- Many local and state governments benefited (and continue to benefit) from inflated real estate values;
I could go on, but you get the point. In short, it’s turned out to be a big turd sandwich in which we will all now have to take a bite.