Only Lying Lenders Made "Liar's" Loans

"Liar's loans were ideal ingredients for optimizing this recipe for maximizing fictional income and executive compensation. The two most obvious advantages were that competent underwriting takes time and costs money. Not underwriting, therefore, allowed fraudulent lenders to lend more cheaply (if one ignores the resultant, catastrophic losses) and more quickly. Not underwriting aided the first ingredient – it made rapid growth easier and, by reducing expenses, increased reported short-term income"