liar loans- loans without evidence of income - lender created
flex rate loans with ballooning rates - lender created
slicing unrated mortgages into bond-like securities and then giving them high ratings when sold - investment bank creation
Liars loans were not new and did not go to subprime borrowers.
They required financial evidence in other areas - such as property or wealth.
Orignal From: Which was the economic meltdown cause: unqualified home buyers,lender malfeasance or bundled investment fraud?
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