As I learn more about the subject of “shadow banking”, I recall how it was that I even made myself aware of “shadow banking:.
Recently it seems, banks had gone to the extreme of not even checking borrowers’ income in the application form… More importantly there was no income verification.
To myself, just a regular guy, I thought that to be an example of “incompetence”. But seeing it throughout the media (and elsewhere) on a seemingly daily basis it was nothing new.
But now I understand… Quicken Loans in now the largest lender for homes in the US. Quicken Loans is in the “shadow banking” category. They are not a bank. They do not take deposits to secure their loans.
I know this is wildly impossible, but are the banks, now incapable of rationalizing their home loan activity, offloading the residential home loans to “shadow banks” to cover their trail and to create a whole new area of financial corruption?
Eye on the Ball 