No credit? No money? No problem!(Tilting at windmills) (Brief article)

• Author: Peters, Charles

The insanity of the sub-prime lending spree must have reached its peak when a California mortgage broker persuaded a seventy-year-old woman to take a mortgage requiring payment of $2,200 a month, when her income was less than half of that.

How could this have happened? Even if the broker had acted unwisely, shouldn't the lending institution, New Century Financial Corp., have rejected the loan application? Unfortunately it appears that in their frenzy to make loans, no one at New Century even looked at the application...