If they had to do that, they would have never made the loans regardless of government threat. Banks knew they could make a killing on this scam which is why they participated. As long as F&F gave them the ability to dump those bad loans, the banks were more than happy to process them.<quoted text>
True, but that doesn't negate my main point, government[demorat] interference in the markets was the start of the mortgage crisis.
The banks and lending institutions were forcibly handed lemons and they made lemonade and now we're shocked?
Should they have just kept the bad loans and took it in the shorts when the borrowers defaulted?
Now if the banks had to make their own loans using their own money and no government intervention, many blacks would never get home loans. They either don't make enough money, have no credit or bad credit, and then the accusation of racism comes into play.
That's what started all this in the first place. But government couldn't force banks to loan out their own money to placate minorities and the poor, so they created this avenue so that it really wasn't their money they were risking.