The central MBS problem seemed to be ratings-based-regulation + free-market-unregulated-ratings-agencies. In hindsight, it should have been structured like gov

The central MBS problem seemed to be ratings-based-regulation + free-market-unregulated-ratings-agencies. In hindsight, it should have been structured like government insurance servicers: subject to random and regular audits, with $$$ fines if they turn up anything fishy. If you don't want corruption, engineer a system where not being corrupt is more profitable...