re: #105 Abdul Abulbul Amir

The regulators would have held such highly risky loans on a bank’s balance sheet at a cause for great concern. However, if they were rolled into a Fannie or Freddie mortgage backed security, the regulators considered the junk to be pure gold.

The housing bubble was in large part the creature of regulatory policy rather than deregulation.

Most of the subprime loans were made by mortgage lenders that fell outside of CRA rules. I.E. Countrywide. You can blame democrats all you want, republicans held chairs in all committees since 1994 till Jan 2007.