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Strategies & Market Trends : The Residential Real Estate Crash Index
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To: ggersh who wrote (287788)10/30/2010 10:10:43 PM
From: skinowskiRead Replies (1) of 306849
 
If I go to a bank and ask for a $1,000,000 who's duty is it to do due diligence?

Banks made money on issuing loans, but soon their responsibility - and exposure to risk - would end, as they would unload them to government sponsored entities. The bank would no longer have its a$$ on the line, and that's where, it seems, was the breakdown in the system. There was plenty of financial motivation to issue loans -- but not to do DD.

Part of it was the bubble mentality -- who cares if the guy can't pay.... everyone knew that real estate can only go up. Take it back and sell it for more. No fear.
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