Quote:
Originally Posted by To Be Quite Honest
Actually, the whole mortgage crisis ensued because the mortgage loans owned by lenders were sold to make MORE money. The people who signed the mortgage papers can stop paying because the loan has been satisfied when it was sold as an investment. Starts 27:30 in the Documentary "Inside Job".
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Yeah this just isn’t true at all – I agree with (or at least it makes sense) that if the original mortgage broker or lender can’t produce the documentation to make people pay them than those people who signed the original mortgage would have some grounds not to. However, just because their mortgage was packaged and sold in CDO doesn’t mean they don’t have to pay at all. If that were the case anyone who has bought any form of fixed income securities from anyone but the original lender would be screwed.