4 ms·

Not sure that is the case. If you can't buy good loans I really doubt you can issue good loans.

• scotty79 4y ago
  To buy good loan you have to check whole supply chain. To issue a good loan you need to check only the borrower and you have every incentive to do so if you can't offload the loan to someone else after it's created.
  • roflyear 4y ago
    Uh, no, lol, unless there is fraud expected ... it's not quite simple to "check the borrower" and it takes a decent amount of legwork.
    • scotty79 4y ago
      Exactly. And it's a work that bank has to put in if it can't sell the loan. But if the bank can sell the loan it becomes "check the borrower or bullshit the buyer" and the banks decided latter is less work. And that's why 2008 happened.