bendra

Why Did the Mortgage Market Go Out of Control?

This article presents a big oversimplification. I did IT work for a major mortgage company back in 1998 and the great majority of their loans at that time were originated from a different bank; the business of buying and selling loans was already commonplace. You'd have to go back at least 15-20 years to get to a time when small local banks held and serviced the mortgage loans they originated. Why did the situation spin out of control in the last 10 years? For me a better question is why it took as long as it did.