And when WaMu qualified a borrower for an Option ARM loan, did the bank use the payment that the borrower would have to make at a recast or did they use a lower payment?
Now, there was a big appetite for residential mortgages on Wall Street until September 2007, is that true?
Why weren't securitizations halted in 2005, 2006, and 2007 when similar underwriting problems were uncovered?
But by 2005, the problems started erupting again with a surge of early payment defaults.
Shouldn't you have checked to make sure that the fraudulent, tainted mortgages were not part of those securities before you peddled them?
Should not happen. These are securities that happened on your watch.
That is never right. That is never what we represent.
Yes.
We are going to try to work here.
Then you ordered a crackdown on early payment defaults at Long Beach, is that correct?
Should you have been?