2) Banks are getting sloppy/forgiving in terms of delinquent home-loan servicing. Delinquent borrowers can often do a deal with their lending institution for some forbearance. Typically the lending institution continues to collect interest payments, sometimes increased interest payments, as a result. For loans that are securitized, they continue to collect their servicing fees, and since they often hold the juniormost participation in the securitization, interest keeps flowing to that as well (sometimes more). This can go on for a while, but it is a harbinger of bad credit building up. In the securitized cases, eventually the senior certificate holders (big institutions) might put up a stink, but their legal rights are limited, unless the abuses of the securitization are egregious.