Reply #13: They've been selling mortgages.

[NYC]

I'm sorry I can't explain it to you. I read an article in Business Week a month or two or three ago.

The mortgage lenders "sell" their mortgages. The high risk mortgages are packaged together, and become securities for sale.

I don't remember all the details, but it was very interesting, and a lot of the places making the high risk mortgage loans in the first place, are not losing money.

See if you can find the Business Week article. It is well worth reading.