This is one of the many consequences of the securitization of mortgages. Back in the "good old days", a banker wouldn't want to inflate your credit-worthiness

This is one of the many consequences of the securitization of mortgages. Back in the "good old days", a banker wouldn't want to inflate your credit-worthiness on a mortgage loan application because his or her bank would be relying on you to repay the loan. But once a bank could securitize your loan and there were limited to no consequences to their funding liar loans, you started to see more and more of them flooding the market.