HUD, FHA, and others in the federal government are working hard to prevent mortgage fraud, predatory lending, and to come up with some assistance for those who have been hurt by subprime loans. The mortgage and banking industry is also trying to clean up its own house. Because mortgage loans are bought and sold in a free market society the problems with subprime loans have made them less lucrative and have caused lending groups to lose money, so subprime loans are being severely limited. The subprime is a very risky investment and has even negatively affected the stock market, so it is an issue that will be addressed by the financial experts.
As for the individuals who have been hurt with this, there is help coming. Many of the government agencies and our congressional representatives have recognized that there are problems. Slowly, funds and other assistance is becoming available. The assistance is also coming from cities that have been hit hard with subprime problems and foreclosures. Find out more in the chapter on “Foreclosure.”