It's very similar. I was working at a mid-size bank a few years ago that was into this. Buy up or make auto loans, bundle them and have them securitized and rat

It's very similar. I was working at a mid-size bank a few years ago that was into this. Buy up or make auto loans, bundle them and have them securitized and rated by by a credit rating agency (Moody's, S&P, etc) then you can sell the loans on the open market where they are scooped up. There are lots of state pensions and other retirement plans that end up buying these securities. It's the same problem as before--banks are incentived to make the loan, but not hold onto it and therefore the banks don't really care about the quality of the loan so long as they can sell the bag to someone else.