Mexicans would flip the homes for more and more money to family members......then the last one would abscond to Mexico leaving the bank holding the bag.
That happened a LOT here in the Chicago area. I know bankers who knew this was going on, they told me so, my banker for 30 years told me so, but they were able to sell off those loans to Fannie & Freddie easily, so it didn’t bother them.
It was common knowledge, common practice, and commonly encouraged. Not only that, they were penalized if they did NOT make these loans.
So, they shut up, made the high risk loan, sold them off in a bundle, and pop goes the bubble.
But, the put salt on the wound, around here, when they went back to Mexico, they took all the copper they could out of the house to use for gas money. The houses were gutted of the mechanicals and electricals, and many still sit empty years after foreclosure, killing the property values of those around them.