What’s securitization? How does it encourage lax mortgage lending?   2. What key roles were rating agencies supposed to play in managing the risk associated with securitization? In particular, without a rating agency, why would it  have been hard (if not impossible) for securitization to have emerged?   3. Why did rating agencies do a poor job?   4. What can be improved to solve the problem .

1. What’s securitization? How does it encourage lax mortgage
lending?
2. What key roles were rating agencies supposed to play in
managing the risk associated with securitization? In particular,
without a rating agency, why would it have been hard (if not
impossible) for securitization to have emerged?
3. Why did rating agencies do a poor job?
4. What can be improved to solve the problem