| As someone who worked on the inside of the mortgage industry at the time
(software and db) there is no doubt in my mind that the crash would have happened even if gas was at $1. Insane loans were granted then loans bundled, sold, rebundeled,sold and so on.
The more established banks that bought our loans did zero due dilligence,
they just boundled things up and sold them. We usually only had the loans less than 48h.
Wells Fargo (one of the banks that loved our loans) usually max of 96h
usually less. We would sell loans that had $1500 - $2000 payments per month to someone
living in an appartment just able to afford $400 in rent. Towards the end, we started having mortgages pile up that we could
not sell, and so we had to actually service them.
I think somehow the boss managed to give them away to some other entity
because we had 0 infrastructure, software, procedures to do it. The boss and founder managed to sell the business about 3 months before
the big bang. I quit 6 months prior. Glad I did.
I feel guilty and ashamed that I ever worked at that place.
It did not even pay very well.
The sales people made enomous bonuses if they were able to make sales. I had friend who stayed until the bitter end. |