Originally Posted by NW Ponderer
...loan officers, the loan seekers, the packagers, the investors, etc. - by creating bad paper and passing it around, they were essentially playing "hot potato" with them, hoping that when they defaulted they would not be the ones holding them.
That's how my Realtor describes loans being doled out in 2005 & 2006. When I pre-qual'd for the IndyMac Bank loan in June 2008, the loan officer admitted to me that he used handle loans without income verification - but now he couldn't do it.

So who was it that allowed loans without income verification - the CEOs of these companies? Somebody at each of these companies allowed this to happen - those folks should be the ones held responsible.

Contrarian, extraordinaire