It wasn't all federal pressure that caused the unqualified lending to take place. Bankers, developers,and realtors got behind it for the profit involved.

I saw secondary market lending specialists in local banks making more money from commissions than the bank presidents. Developers moved property and the smart ones banked their profits. Realtors got their commissions for finding borrowers who were perfectly willing to live the good life for a while completely understanding they could not afford it and would be foreclosed.

The only limit was how deep the federal pocket was on loan guaranties. At that point the Wall Street bonus boys figured out a way to legally use these bum securities as an investment product. That's when the bubble finally burst...Geo