A Little Embarassing But Maybe We Didn’t See it Coming Either

A very interesting analysis of what U.S. securitization “professionals” may or may not have known about the coming housing and credit crisis back in 2005 and 2006.  A very good article in Mortgage News Daily catalogues an insightful study into the purchasing habits of mid-level securitization managers and other professionals in the months leading up to crisis.

Conventional wisdom continues to tell us that these industry insiders kept quiet about this pending doom because they were mostly motivated by fat pay incentives attached to how much business they closed.  Seems like a pretty logical conclusion.  Only problem is that until now, no one thought to look deeper, starting with a very basic line of questions.  If the securitization industry was “in on the sting”, how did it affect their own decision-making about purchasing real estate during those heady days.  We think the results may surprise you.

You can link to the article here: http://www.mortgagenewsdaily.com/03252013_secondary_market.asp