Against a backdrop
of a buoyant US economy, very low interest rates, rising house prices, low federal regulation,
excess global capital, heavy global demand for mortgage-backed securities and ease of risk
transfer, lenders (typically banks) sought to satisfy demand by increasing the pool of borrowers
and in turn increase their profits.
Against a backdropof a buoyant US economy, very low interest rates, rising house prices, low federal regulation,excess global capital, heavy global demand for mortgage-backed securities and ease of risktransfer, lenders (typically banks) sought to satisfy demand by increasing the pool of borrowersand in turn increase their profits.
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