Reply #13: You are correct, however, when millions, possibly billions of loans are called on to be purchased

[Pisces]

back, the mortgages companies closed their doors, filed bankruptcy, etc. This coupled with the fact that most were upside down ( many by half of the value) the collateral did not cover the losses.

People want to explain away the crisis in a black and white scenario. It was a perfect storm combination, no company wants to own a bunch of houses. You lose money when you foreclose even in the
best of times much less with values down and buyers scarce.

People want to imagine some evil villain sitting behind their desk plotting on how to fuck over poor people. It was the regular loan officer looking to make more money on commissions, the borrower
who wanted a bigger house and gambled on more income, lenders who loosened the guidelines to sell more loans and compete with xyz company, hedgefunds who looked for new ways to make cash.
So everyone who got something from the housing market.