"Nobody had models for that."
Talk about hubris. Build an entire industry on giving destitute dreamers gobs of money for homes worth a fraction of the going price, and when these people default on payments from day one, "Nobody had models for that."
Tell me again why we're wasting a single taxpayer dollar on trying to bail out this ridiculous bubble...
The mortgage executives who gathered in a blond-wood conference room in Southern California studied their internal reports with growing alarm. More and more borrowers were falling behind on their monthly payments almost as soon as they moved into their new homes, indicating that some of them never really had the money to begin with. "Nobody had models for that," said David E. Zimmer, then one of the executives at People's Choice, a subprime lender based in Irvine. "Nobody had predicted people going into default in their first three mortgage payments."