When all the savings and loan companies failed in the 1980, that system was replaced with securitization. That system was flawed from its inception, and will be replaced with something else. Hopefully, with a nation of sane homeowners who will not borrow 125% of their equity to “hop on a hot stock” as Ditech used to advertise. House prices will come out of the stratosphere, and people will, once again, save up to buy a home. It very likely may be the federal government will be the only lender, as it is now. This would be a very bad thing, but no worse than what we have; lawyers gouging the banks, who gouge everyone. Wall Street must be kept out of the mix in any case as it simply can’t be trusted, period.