Winterspeak — Securitization of real estate serves no purpose

The purpose of banking is to make credit decisions by having private capital in first loss position against default. To ensure that that private capital remains in first loss position, any loan extended by an institution which has made a credit evaluation should stay on the books of that institution until the loan has matured.

This may make loans more expensive, but you're getting what you are paying for -- good credit decisions where the incentives are to lend out money when you expect it will be paid back.

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Securitization of real estate serves no purpose
Winterspeak

Do we want banks to be chiefly risk managers or risk takers?