Ed, re your response #5 above, my point is that many lenders (especially CW and IM) did not give a rip about the quality of the loan once they had made it. They got their fees on the front end, sold the loan, then continued to gather in loan sevrvicing fees for the life of the loan, with no real risk after they sold the loan. They were incented to make as many loans as possible because the servicing fees became their annuity income. In a big operation, the revenue from servicing fees can exceed the revenue from the lending side.
