THE HOUSING CRISIS IS OVER. GO TO THE PROBLEM. GET RID OF THE CREDIT SCORE AND START GIVING MORTGAGES TO WORKING PEOPLE. THE PROBLEM IN RESOLVED

Tony: Lending money to people without regard to credit scores (as the Liberal congress insisted, over the objections of Conservatives), thereby ensuring that a large percentage of them could not repay, is one of the main causes of the current mess.

The problem began with the banks and continues. How can bank analysts and pundits defend charging a less qualified borrower double the interest rate compared to one with a better fico score? If a borrower could not qualify for a 6 % loan (best rate), why would the banks set up the borrower at 11%, plus much higher fees, knowing he couldn't make the payment and will ultimately fail? That higher risk/ higher return practice is untenable for homeowners with just one or two sources of income. Large businesses are different.
There should be a flat interest rate for every American for a first time home purchase. After that the market could prevail not to exceed usurious rates.
I believe the problem rests with the greed and manipulation of the banking industry! That is something which could be easily ameliorated with the trillions of bail out money and one stroke of President Obama's pen. That would immediately stimulate the economy and get us out of this mess!

Someone got a new thesaurus for Christmas ....