ALT-A: The Risk Abatement Disaster is Coming

"As late as the spring of 2007, major national lenders were still aggressively marketing Alt-A products with with ridiculously vacuous underwriting criteria: A borrower could secure a no income/no asset documentation cash-out refinance loan, with a simultaneous second mortgage up to 95% CLTV, on a non-owner occupied investment property, with only a 620 FICO, two months PITI reserves and a debt to income ratio up to 60%. Now everyone responsible for the mounting losses will throw up their hands in utter surprise that the golden child of the short lived post-subprime era was a bad idea too."