There are a couple of great information on this. be certain you go through links first and sixth over on www.loanguide.tkHow did mortgage-backed securities (namely sub-prime mortgages) help lead to the financial crisis?They gave people loans they were aware they could not afford. The people lost their homes, the banks asked Obama for money, he gave them the money, they are rich now and not only are they keeping the money, they wont let anyone get a loan. The EndHow did mortgage-backed securities (namely sub-prime mortgages) help lead to the financial crisis?The mortgage brokers keep cranking out the mortgages because they are not lending their own money. They don't care if the borrowers can pay back or not. Who would care since they sent them off to Freddie and Fannie 1 day after closing. The mortgage company got their profit, and fannie/freddie investors are left holding the bag. Mortgages go bad, and the rest is history.
I don't know if much has changed though.
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