Some of the financial firms' top management should have been skinned alive, slowly in public.
They knew darn well about "liar Loans," and surely knew if it blew up, they would just walk away with Millions$
They did.
Talk about "trickle down" here too..., the money poured in right down to the loan officer taking the application.
Let's say, the daily ZERO POINT quote for a $5M 'bundle' for mortgages was 4.125%
Any approved loan package with an annual yield back to the investor greater than 4.250% is picking the pockets of the applicant.
A buyer who 'knows' he's lying on the loan application, figuring he'll be getting 'income' from renting bedrooms and basements, doesn't give a damn if he's paying 5.5% on the loan, instead of said 4.25%
Successful, popular loan officers were all driving Mercedes and Bimmers back then.