All I am going to add (and this will be my last post on this subject) is that the primary REASON why many of these financial institutions were even able to make these "unsupervised" loans was because they knew full well that they themselves will not have to carry these unpayable loans on their books.
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Which institutions? Not the CRA banks. "Compared to other lenders in their communities, banks making loans
in their CRA assessment areas (CRA Banks) were less likely to make a high cost loan, charged less for the high cost loans they did make, and were substantially more likely to eschew the secondary market and retain high cost and other loans in portfolio. Foreclosure rates were also lower in metropolitan areas with proportionately greater numbers of bank branches."

***********.reuters.com/article/pressRelease/idUS135259+07-Jan-2008+BW20080107