Good overview here on the role of lenders in the subprime mortgage mess, with emphasis on the securitization of risky lending. The ugly end truth is in there...
Whether or not big investors come out okay, the damage is done for many homeowners. "The system allowed banks to create unsustainable loans that are going to haunt borrowers for years to come," says Allen Fishbein, director of credit and housing policy at the Consumer Federation of America. "Unlike the bank, the borrower has no way to lay off the risk."