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Unformatted text preview: less than the full documentation required of a prime loan 2. btw prime and subprime Benefits of Securitization 1. ability to remove asets from BS 2. new funding source 3. ability to reduce regulatory constraints 4. custom tailoring investment size, risk and timing of returns. 5. Liquidity 6. Diversification Not surprising they didnt see this coming 1. mortgage bankers 2. appraisers 3. rating agencies 4. underwriters 5. acct firms 6. congress and president 7. SEC i. EVERYONE MADE MONEY BY DOING WRONG...
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- Spring '11