What Fannie doesn’t tell you is that they sell their patented software Fannie Mae 1003 loan application to the investment bank…for a commitment before the borrower signs loan documents. And that the lender is only an originator – not necessarily the “lender” in the traditional sense. By using this seamless automation of patented software the banks have been able to take the loan application, dip it into securitization and sell it first, before you sign – possibly making the loan documents quasi-securities… And that’s why Sheila Bair calls these NTMs (nontraditional mortgages) in her book – Bull By the Horns.