Mortgage Bankers Can't Pay Their Own Mortgage

 

The Washington Post notes that last year, the "Mortgage Bankers Association was thrilled to sign a contract to buy a fancy new headquarters building in downtown Washington." Since then, however, the group "has fallen on tough times as many of the subprime mortgages dispensed by some of its members proved dicey." The result is that the group is now finding it "harder than it imagined to pay its own mortgage":

Scheduled to close on the building in the coming weeks, the association will have to pay millions of dollars more than it would have a year ago when it contracted to buy the 160,000-square-foot structure — millions of dollars it is now less able to afford. [...]

Critics also see irony — and some justice — in this predicament. "They are certainly getting what they deserve," said Dean Baker, co-director of the Center for Economic and Policy Research, a liberal research group. "Mortgage bankers encouraged people to take out mortgages that were very risky, and the result of that was a large number of the mortgages went bad and caused mortgage interest rates to soar. Now they are the victims of high mortgage rates and chaos in the market more generally." Think Progress