Why do businesses home mortgage CountryWide lead money to people pay it back?

From news media, a lot of home foreclosures mortgage companies as Countrywide. The employees write loans business degrees experience in home mortgages go create approve loans 39 t be repaid! Can explain to me business do this?

Responses:

Up Countrywide lenders loans knew recipient repay sold loans to companies as as written, recipient defaulted. By time loan bad, company be holding it Countrywide money. The sold loans pooled a supposedly homogeneous m a properly mixed portfolio of loans in theory greatly reduces risk. These risk free financial instruments sold to ins utional investors
If lend money to a 1000 people, 3 percent of won 39 t be to pay as promised. That 39 s 30 people. You 39 t people giveyou problems loans
Because money selling bad loans in marketplace to idiotic hedge fund investors no idea investing in. The bank takes bad loans, packages bad loans, sells package. The banks tens of billions of dollars and, loans go bad, lose a billion dollars, to up in place. Then, Fed buys bad loans newly inflated money, banks hook again. We 39 t be surprised banks screw us over, money, losses screwing us be transferred to us inflation

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Home Refinance?

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