A senior risk manager at a financial regulatory agency has given a task to a risk analyst to examine the subprime mortgage securitization process. The objective is to identify market participants who may be affected by informational issues or frictions caused by predatory lending and predatory borrowing. The analyst delves into the US subprime mortgage crisis of 2007 to 2009 to understand the conditions that nurture these predatory activities. Which of the following correctly identifies the frictions between key participants in the securitization process that are linked with both predatory lending and predatory borrowing?