Making bad loans and performing due dilligence are the originators responsibility. They would just write cheap mortgages and then sell them off to investment banks. Knowing full well that the individuals could not pay the money back. They would even decieve the investment banks on the income of the people to whom the loan was made out to.
The investment banks are fooled into buying high risk debt they might not have asked for, or they take risks beinging fully aware.
But its the Mortgage originators that walked off with the money from the fee’s paid to them by selling bad loans.
Its all that credit loan crap on tv you saw. Bad credit…no credit…no problem…this is what they were doing
thats my theory