[Son House]

Don’t the savers and investors suffer more loss?

Mortgage-backed Securities

http://useconomy.about.com/od/glossary/g/mortgage_securi.htm

Definition: Mortgage-backed securities are a bundle of mortgages that have been sold by banks to Fannie Mae, who then repackages them and sells them to individual investors. This allows the banks and mortgage companies to sell mortgages off, and take them off their balance sheets. This removes one constraint on banks to make sure the loans are to qualified borrowers.

[Son House]

Mortgage-backed securities are a bundle of mortgages that have been sold by banks to Fannie Mae, who then repackages them and sells them to individual investors.

Just like the neighbor's snowmobiles for sale, they could put "free" on that sign and I would still drive by