Not long ago a group of industry professionals got together to ask who was really to blame for the subprime lending fallout, and many claimed that the consumer and the lenders were to blame.
But, guess what a mortgage broker in the group stated. He thought that at least some of the blame should be on the backs of the Real Estate Agents.
Amazing what happens when you start pointing fingers isn't it?
One individual in the group stated that perhaps we should give lie detector test to Realtors to find out? Of course, the real estate agents stated:
Big Brother - is that you? Lie detector tests are for LENDERS, not Real Estate Professionals!!! It's called Sub-prime LENDING, not Sub Prime Real Estate Brokerage...The one who lent it, spent it!
Well, indeed the Realtor makes very Strong Argument,Touché! It is called the "Subprime Lending Fallout" in the media, but its also called the Housing Bubble, that burst and Realtors sell houses, that's what they do, while lenders sell money and mortgages. No, I am not making any judgments really, and these conversations go on all over towns in America every single day.
In fact this article was inspired by two things; by some hostile dialogue I overheard during a heated debate on this very subject from realtors, and thus that prompted me to spin the article in this way. And Second, by a conversation I heard today at the Cross Creek Starbucks here in Malibu between a "somebody" in the Mortgage Industry (CEO) and some of his real estate investor friends who happen to be some friends of mine.
Personally, I don't much blame the Real Estate Agents, many of whom were caught up in the game or the other players who were but pawns in a MUCH Bigger game, yet, I still think the question is a fair one; who is to blame? All the people involved from the Investment Bankers down to the consumer taking the loan deny responsibility, and yet I the tax payer now has to pay? Hmm? Does that mean I am to blame; because guess what, I'm not. Something to contemplate in 2008.