English grammatical question?

The long part: "whose lax controls and willingness to rely on shortcuts led them to approve borrowers that under a less-automated system would never have made the cut" is an adjective clause that modifies "users." Within that that clause is another,"that under a less-automated system would never have made the cut." This one modifies "borrowers." The simple sentence: Some people think users are at fault for the subprime meltdown.