Wall Street, lenders, agents share blame

Re: 'Bring on the short sales, foreclosures' (May 9)

Dear Editor:

Whatever happened to: "Do unto others as you would do unto oneself?"

The country would not have been in this mess if traditional lending policies had been followed and those making the loans were honest and ethical. Fortunately, none of the people whom I have assisted over the past 31-plus years has ever been foreclosed upon or filed bankruptcy because I would not lead them get into such a difficult situation.

It was a bunch of greedy and unethical people on Wall Street and mortgage lenders, along with inexperienced real estate agents, who placed their self interests first and opted for the higher subprime commission vs. making the 30-year conventional, VA and FHA loans using traditional loan-qualifying methods.

Wall Street, down to the local lender and real estate agent, had a responsibility to look out for the best interests of their clients, most of whom only buy or sell a house two or three times in their lifetimes.

Instead of helping, Wall Street, lenders and inexperienced real estate agents screwed it up. The local lenders and real estate agents should have used "tough love" by advising the buyers of the consequences before they purchased such horrible loans, and advising them to get their financial house in order.

Lastly, they should have refused to put the home buyers in a situation that was doomed from day one. From my knowledge, skill and experience: send the Wall Street market makers, local loan officers and real estate agents who placed the borrowers in this horrible situation straight to jail.

John Riggins
John Riggins Real Estate
Honolulu, Hawaii

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