“Law firms competed with one another to file the largest number of foreclosures on behalf of lenders – and were rewarded for their work with bonuses. These and other companies that handled the preparation of documents were paid for volume, so they processed as many as they could en masse, leaving little time to read the paperwork and catch errors.”
I guess this was the flaw Greenspan admitted. I understand incentives matter. So if the incentives are stacked like this – is the only way actors will behave? Is regulation the only way out?