Subprime Lenders Still Soaking Taxpayers
By Arnold Kling
But Premier didn’t just close down. Since it declared bankruptcy, federal records show, it has issued more than 2,000 taxpayer-insured mortgages–worth a total of $250 million. According to the FHA, Premier failed to notify the agency of its Chapter 11 filing, as required by law. In late October, an FHA spokesman admitted it was unaware of Premier’s situation and welcomed any information BusinessWeek could provide.
The story, which includes many other examples, is headlined “The Subprime Wolves are Back.” I think that the word “wolves” is an exercise in editorial license. The proper term is “sleazebags.”