GoFuckYourself.com - Adult Webmaster Forum - View Single Post - Financial question about mortgage backed securities

Mutt · 09-02-2013, 05:36 PM

I don't want to re-hash the how and why of the housing/financial crisis in 2007 but there's something I've never understood about it. The collapse of the housing market happened when people defaulted on their sub-prime mortgages on homes they really couldn't afford, that set off a chain reaction on Wall Street because Wall Street had been busy selling these complicated/shady 'mortgage backed securities'. They had bought up these mortgages from the original lending banks.

So how come all these homes that were defaulted on ended up back in the hands of the banks when the banks no longer owned the mortgages on them? I must be missing something.

09-02-2013, 05:36 PM
Mutt Too lazy to set a custom title Industry Role: Join Date: Sep 2002 Posts: 34,431	Financial question about mortgage backed securities I don't want to re-hash the how and why of the housing/financial crisis in 2007 but there's something I've never understood about it. The collapse of the housing market happened when people defaulted on their sub-prime mortgages on homes they really couldn't afford, that set off a chain reaction on Wall Street because Wall Street had been busy selling these complicated/shady 'mortgage backed securities'. They had bought up these mortgages from the original lending banks. So how come all these homes that were defaulted on ended up back in the hands of the banks when the banks no longer owned the mortgages on them? I must be missing something. __________________ I moved my sites to Vacares Hosting. I've saved money, my hair is thicker, lost some weight too! Thanks Sly!