But you're speculating. If it was a good deal in this case, what makes you think it's not in other cases? Can you point to a specific case where you think it's a bad deal?
As long as we don't bail them out again, I don't really care what crazy deals banks and bank customers come up with.
I could care less if it’s a good deal for the banks.
She got a 600K loan against a property she already owned a substantial share of (not a purchase money loan with nothing down) as a working home health aide who is also a nursing student.
> In 5 years it’s very possible it could become unaffordable.
In 5 years it's quite likely that higher income and lower loan to asset value will let her refinance it down, too.
> What about the other people? The atricle mentions these loans grew by 25% in 2018.
Subprime mortgages aren't generally a problem on their own, absent the kind of incentives to misrepresent their quality for sales of securities that existed in the last housing crisis. To the extent that hasn't been corrected, that's a problem, but let's not target subprime lending as the problem (heck, in the last crisis, a lot of the problem loans weren't even subprime.)
She also took it an ARM loan at 6%. In 5 years it’s very possible it could become unaffordable. Not a good decision either.
In this case it may be a good deal for both parties. What about the other people? The atricle mentions these loans grew by 25% in 2018.