| Can anyone educated in finances explain to me why banks sell mortgages to these companies?
I'm ignorant on the subject -- but it sounds like, to me, that the ability for a bank to sell a mortgage to an individual THEN off load it to another institution creates a situation where the bank itself doesn't give a shit whether or not the individual can afford it. The bank effectively removes the risk of a shitty borrower since they're immediately selling that loan to Fannie Mac, Freddie Mac, or whoever.
Is this part of the reason why we're in this mess? | 