WHAT deregulation???
The problem lies in government defining the manner of business, instead of putting the market to work, or at least allowing it to. Had those mortgagers not been rewarded (because of regulation) for making bad loans, and those mortgagees not been rewarded with mortgages the market couldn’t bear, we (semi-innocent bystanders and proponents of still more regulation) wouldn’t be on the hook.
Kirk
I should point out that if you’re leaning at placing the blame on CRA. I should point out that even though CRA was a requirement of commercial banks it was never a requirement for the investment banks that were funding mortgage brokers.