Strong ownership is necessary for a strong economy. The market crash and subsequent prolonged recession were the consequences of years of deteriorating ownership strength in the housing and mortgage markets. The advent of securitization significantly weakened the ownership of both homes and mortgage loans.
Before securitization, a homebuyer put 20 percent of his own money toward a mortgage, granted by a lender who thoroughly scrutinized the borrower before making the loan. Borrowers knew the best way to protect their 20 percent stake was to make timely payments. Lenders . . .
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