Lenders had already begun the process of making questionable risks, the new policy was aimed at redlining and holding minorities to a different standard.

While you can debate that all you want, what cannot be debated is that the primary responsiblity laid with lenders, and investors for issuing and purchasing loans that were not properly secured for risk.

And we can safely say that contributing to that was the fact that every participant in the system at every step in the process had every incentive to issue the mortgage and none to not issue the mortgage. Separating originating lender from risk made it simply irrelavant to the people issuing the loan as to whether the risk was acceptable or not.

And the ones that purchased these loans, knew they could make vast profits chopping them up and selling them around the globe.

It was good for everyone and made everyone a lot of money. right up to when it didn’t.

COmpleted typical of unregulated markets it pushed and pushed and bubbled without regard to consequences until it popped and whoever hadn’t grabbed their seat got soaked.

But joke was on everyone else, the people that got soaked spoiled everyone else’s party.