Father of Mortgage Backed Securites Lewis Ranieri: Securitization is Not the Villain
Ahhh but I say yes it is.
He claims that the abuse of securitization is to blame. Well, I say if it is abusable, then securitzation IS to blame.
“Securitization is not the villain. Abuses in securitization are to blame,” Mr. Ranieri wrote.
In Mr. Ranieri’s view, the practice he invented wasn’t the culprit in the subprime mess.
They were the homeowners who treated their homes like ATMs; the unscrupulous lenders who sold mortgage loans that weren’t designed to be repaid; the speculators; and the Wall Street firms and Fannie Mae and Freddie Mac, who gobbled up bad loans.
Check out the letter to sent to our “administration” below…