July 13, 2007
Remember when you had to have a down payment? Remember when you couldn't borrow funds to use as a downpayment?
What really sent the system spinning out of control these past few years is the use of "piggyback" loans, where you'd take out 80% or 90% of the value as your first mortgage and then basically charge the rest onto an unsecured piggyback loan.
Save up for a downpayment? Nah!
Have some skin in the game? Nah!
Cause the biggest financial crash in recorded human history? You bet!