In lieu of commenting I thought perhaps rehashing would be a more efficient use of time since we all know the story. Especially when it involves Countrywide:
- Botching the securitization process by failing to deliver the notes and mortgages into the trusts that issued the securities.
- Charging that Countrywide knowingly sold vast quantities of fraudulent mortgages in order to securitize them and sell them to unwitting investors.
- Manipulating the loan origination process to issue mortgages to people who couldn't pay them back because that was the only way to generate the volume of mortgages that the bank wanted to issue (15,000 to 20,000 loans/mo. in 2006) .
- Loan applications that wouldn't be approved based on underwriting standards were apparently "flipped" into a stated-income or other low-doc loan category, and then approved.
Do we really need to know any more?
FULL STORY: DAILYFINANCE.COM