So suggests Jeffrey Dorfman, here:
"If we want to avoid a repeat of the recent mortgage market meltdown, we would be wise to reform the incentive structure in the mortgage industry. No government regulation is needed to accomplish this. Wholesalers can change the way they pay brokers and investors can require wholesalers to keep some skin in the game by taking at least some of their profits over time along with the investors. Spreading payments over even as little as three to five years would significantly change the incentives.
"If wholesalers and brokers got paid only if the mortgage borrowers made their payments, I suspect that we would have fewer mortgages with repayment problems."
