Quote:
Originally Posted by goof2
I know the question wasn't directed to me but if you look at the financial problems Countrywide, and by extension BoA had the originators appear to have been holding on to more than enough loans to screw themselves up and that did nothing to check their decision making.
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From what I recall...prior to the buy out BOA had its hands clean of the mortgage mess. They bought Countrywide because it was a good deal (it has paid off for them and in the long run was a good buy)
Countrywides issue was they were kings of the "give mortgage to anybody" and then sell the loans off. In the end...they could dump them anymore and were stuck with them.
I guess the reality of it is that taking ownership (of the debt/obligations) would only work with smaller banks. Stringent lending practices without the pressure to turn the mortgage business into a cash cow.