I have been employed by a variety of lenders (most of them out of business for years).  In the late ‘70s, I entered the mortgage banking profession.  I was a permanent “temp” for a savings and loan and for several months floated from department to department. 

At one of my earlier jobs, we only sold our 30 year fixed rate loans to Freddie Mac , I am not sure why we didn’t sell to Fannie Mae. We only generated fixed rate loans and it was not too complicated (until interest rates hiked during the Carter years, and that is another story).  We made loans, we sold them and made more.  

At the time each loan was scrutinized by a human being, the credit report was analyzed, there was no FICO score tabulated by a computer.  Employment was verified and down payments of 20% were required or the home buyer paid for private mortgage insurance to insure the bank for the increased risk.  I “was brought up” in this conservative lending environment. 

Later, I was promoted to “Underwriter” and I approved home loans. I took pride in my work and in my decisions.   My fear was to have a loan go to default and be questioned:  “Why did you approve this loan?”.  Lenders had internal auditing departments; loans were reverified after closing.  I certainly didn't want to approve a loan where I was “fooled”.