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Why would a mortgage broker care to do his due diligence, if he knows he'll sell the loan tomorrow, and take none of the risk of default? This is about incentiv
by redblacktree 13y ago
Why would a mortgage broker care to do his due diligence, if he knows he'll sell the loan tomorrow, and take none of the risk of default? This is about incentives. Incentives that were bound to lead to excessive risk taking and an inevitable crash.