Agree with 95% of this. The only slight tweak id make is that the banks did err in assuming the value of the homes being used as collateral could not tank. Sett

Agree with 95% of this. The only slight tweak id make is that the banks did err in assuming the value of the homes being used as collateral could not tank. Setting aside for a moment the reality of pretty rapid sales of the note to another entity, in general, it shouldn’t matter very much to the bank if you’re able to pay the loan back, assuming that their predictions are correct about the value of the home, and assuming as well that you don’t physically destroy it. Either they get their money or they get to sell the house and get their money.