Can trust in Securitizations be revived?

The discussion about the feasibility of reviving the securitization business revolves to a large extent about how to ensure that investors can trust the integrity of the packaging process that is behind the creation of the securities backed by the underlying loans and mortgages. The concept of securitization from the buyer's perspective means that as an investor he gets access to a multitude of loans that are individually too small to be of interest (in the case of the institutional buyer) or too large (for a small retail investor). Both are unwilling or unable to conduct individual due diligence on every single underlying loan and in effect have contracted out the credit research to the institution that creates the loan bundle they are acquiring. 
While in an ideal world the 'free market' would take care of the problem of moral hazard and ensure that no loans of questionable value are sold or purchased we do agree that the requirement for packagers to retain a substantial stake in the securitized product is a sensible suggestion. While this may well raise to cost of the securitized package we think this is a price worth paying given the abuses that helped create the credit crunch of 2007-09.