[Son House]

Why is the Government involved in mortgages?

Don’t the savers and investors also 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.

[GOPJ]

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.

Like Willie Sutton, politicians know where the money is... Guess after a while 'favor trading' starts - - govt starts picking up some of the risk from banks - and dumping it on taxpayers. Lawmakers help friends and contributors while pretending they're 'helping the poor'. What they're really doing is helping themselves and setting up the "poor' for failure. These people need to go to jail...