Loan Officers gain the trust of their clients. It's the only way they'll get the loan. They had thousands of incentives to talk their clients into ARM's....so they can go back to them in three years and get another re-finance out of them for more thousands. The lenders themselves disincentived 30-year-fixed loans, many of them by penalizing their loan officers $$ for selling them. What kind of sense does that make?
Here we are with the lowest mortgage rate in YEARS AND YEARS and loan officers stilldon't want to sell 30-year-fixed mortgages. They don't make any money on them.
Oh!! And how did the loan officers talk a client who already had a mortgage into refinancing so the LO can make another $5K? They say, "Hey, you can save a little on your monthly payment. Oh, and by the way, do you want any cash out?" The magic words that led the housing market to debacle.
The industry was corrupt. It's less corrupt now.