Mr Cooper Group Inc (COOP)

[David West]

To understand what was going on, you have you have a good working knowledge of how the mortgage industry sells mortgages back and forth to each other. The link below is a good start on increasing your knowledge. There would have been no problem if lenders made loans to people who could make the monthly payments. The crash came because lenders saturated the industry with mortgages made to borrowers who simply could not make their payments. In many instances, the federal government put pressure on lenders to make it easy for the less fortunate to buy homes, but the true culprit is the greed of the lenders. WMB was guilty of making these loans on a vast scale. In the end, they were stuck with the high-risk mortgages; no one would buy them. The scenario is identical to the payday loan industry where the lender knowingly makes a loan to a borrower who is a high credit risk, and eventually defaults on the loan.

http://home.howstuffworks.com/real-estate/buying-home/mortgage16.htm