Then we get to deregulation and 4) companies see how much they can make on
subprime mortgages 5) companies dispense with money - down
mortgages 6) companies push exotic
mortgages (alt - a,
subprime, neg amort) 7)
mortgage making and holding becomes almost completely decoupled encouraging questionable
mortgages 8) default risk is now rated
via credit ratings instead of ability to pay