In every mortgage conduit around the nation, for example Countrywide, Indymac, etc.), there lies a department full of young aggressive relationship managers/account executives who push loans through a pipeline. Each day they print out their pipelines which can sometimes be hundreds or thousands long. From each loan that is funded, they are given a percentage (commission). For subprime loans, usually the commission was much greater. Now, picture this... An army of relationship managers pushing through loans at any cost. Documents being forged, manipulated and underwriters placed under pressure or even bribed. Guidelines thrown out the window and an environment where just about anyone who can sign their name gets a loan. Then imagine these loans being packaged up and sold off to some unknowing third party. The third party might be a hedge fund or even a pension fund. In fact, the third parties might even know they are buying ticking time bombs, but dont care. They might be just traders or managers at the fund who might want to make money for the moment and not worry about the coming explosion. Hey, why not, afterall, its not their money. Its some guy's pension and not their own. These loans are ticking time bombs that will explode in time. The picture is actually a lot worse then I have painted. I believe in time more problems will emerge especially as the economy becomes worse in the next 12 months.