re: #104 Dreggas

having worked in the mortgage industry and seeing first hand how the mortgage companies and several banks were able to give a loan then turn around and sell it off at a profit 90 days later yes they would do it on their own. They did do it on their own and greed was the overriding factor. Lack of regulation and little oversight of the secondary market for securitized loans was the big issue.

When Joe Smith walked in off the street they didn’t care how much he made they had a loan for him (Alt-A and subprime specifically) and even if he read the fine print they told him it was ok, he could refi down the road. What they didn’t tell him was that after 90 days they could (and did) sell that loan along with other loans as “investments” on wall st.

Easy money for the mortgage company and no need to worry about holding junk loans once they were sold.

OK cool… who did they sell the bad loans to if I may ask?