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: Mortgage Lender Implode-o-Meter

Will the Market Adrenaline Last?

By Implode-Explode Heavy Industries

"The mortgage brokers did not scrutinize the borrowers because they knew the loans would be off-loaded to the banks. The banks didn?t pay much attention, they just bundled the loans and passed them to investors. The investors didn?t look too closely because the bundles supposedly diversified the risk and anyway they were insured. The insurers like AIG and Fannie never expected to pay and so when they couldn?t the government did."

Full post as published by Mortgage Lender Implode-o-Meter on May 11, 2010 (boomark / email).