There are many kinds of lending institutions with many different laws regulating
how loans are made. High risk lending with no investment or down payment and
manipulated closing law violations caused the home buying and building meltdown.
Banks lost more money in unpaid fees than they did in interest on loans.There is still a dysfunctional lending program ongoing and its more
personal and higher risk with no tangible assets involved to the person getting
the money. Its called student loans and parents trapped into financail ruin for
their participation in the student loan programs. Credit cards are next in line.
Mortgage loans have become more restricted by the type of lender and demographic
nationality of borrower and governemnt subsidies involved.How honest
a bank or lender is and the big payoff to lenders is the "terms and
condition" fees and charges on every loan they sell. Terms and conditions
are the deadly undisclosed information most people don't get to see or get
told about. By violations of terms and conditions and penalty fines a lender can
recover the cost of loan in a few years and could care less about risk lending.