I'm not sure about this particular situation, but I was helping a finance friend with some risk modeling a few years back and realized that a significant portion of these high-risk loans are basically a game of hot potato.

Everyone knows the loan will not be repaid in full, so people hold the loan for a short window in order to collect that juicy interest payments, then sell it to the next sucker whose spread sheets convince them that they aren't going to be the one left holding the bag.