BSR I very much disagree with that philosophy. This is well beyond the scope of a lender or bank. Being a landlord creates liability. Furthermore, once again, the mortgages, that then became securities, also have terms and conditions attached to them and it would be a violation for the lender to keep the property and become a landlord. Since the property doesn’t pencil out there is no way rent can cover the expected return on the security when it was created.
I believe that scenario has a much lower proabability then lenders just lowering the cost of the home and dumping them. Legally that is what they can do without creating additional liability. The investors are left holding a bag of poop.
