The bank keep the good mortgages for themselves, and bundle and sell of the crappy ones. To the extend they are government insured, the taxpayer foots the bill.
Banks make billions, investors and taxpayers get screw#d.
The “affordable housing” advocate organizations continue to blame the crisis, past and present, on lenders and holders of the mortgages, past and present, instead of recognizing the REAL FACTS are that people bought houses they could not afford, and in spite of all the government help some still cannot afford. THAT is not “Wall Street’s fault”.