No PAF, I don't agree! The sub-prime was just the first domino to fall, the SP lenders were just the first to run out of money when to came to refinance their loans exacerbated by the start of the housing price collpase and therefor not having the equity to refinanace. Surely PAF you're also aware of all the games the SP lenders got up to when it came to getting loans approved?
As to dropping the keys off when a lender gets sick of paying a home loan that's out of the money, well that's been a US thing for years and has nothing to do with the direction for banks to loan to "risky" lenders. Anyway, my understanding was it was a threat, do it or else! They could have called the bluff. Plus look at the behaviour of the bigwigs at Freddie and Fannie, they paid themselves a fortune on their turnover and also did as much as they could to hide how risky their loans were.
Sorry, but YOU also don't create anything! I suggest you go back and review your posts to other PPruners and if you don't like my vomiting on you, sorry but you earned it IMO!