The guidelines for banks, according to a banking friend, is to make x amount of low income loans. They know they will never be paid.
In the 70's I sold several homes for an investor that bought wrecked homes from the government for 5K, spent 10K and I resold them for 25K. FMHA loans, .25 to $1.00 down payment and the loan included closing cost. Most of the homes were lived in for 6-8 months, torn to h___ and vacated, just to be resold to the investor for 5K AGAIN. I quit selling them. Such a waste. I learned if you get something for nothing you usually don't care.
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