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November 30, 2007



I wonder how many of these are stated income loans? If I had lied on my loan application about my income, and now I have to prove my income to get relief, it could be a difficult situation as I would in effect be confessing to a felony.


I wonder how this will affect the bond insurers like MBI and ABK? The two seems to have gone up over 15% today. Is the market assuming that the payout for CDOs will be lower because of the freeze, thereby relieving the two of financial pressure to raise fresh capital?


I think the worst is yet to come....now wth sops do fed ve for non-prime borrowers? why should'nt they default now to get such sops...?
I think if someone has made money in this entire fiasco then its big daddy..our own MS, ML,BS,GS...

Rob Dawg

I'll sit still for this on one condition. The modified loans are reviewed for fraud and prosecuted when discovered. Never gonna happen.


The question I have - which I haven't yet seen answered on any of the financial blogs - is whether and how the mortage originators taking part in the plan can enforce its terms on investors who have bought the mortgage debt. Otherwise, any agreement to freeze rates would apply only to mortgages still held directly by the lenders taking part in the plan.


As I have stated in the original post, this plan is full of questions, riddles, what-ifs. I still think it would be simpler to just invalidate the right mortgage holder/servicer to raise rates if the mortgage was proven to be fraudulently pushed upon the mortgagee. Then again, this would be ripe for the challenge as well, but not nearly as much as what is currently being proposed.

turtle ridge homes for sale

Those are the people you want to save, not the ones who tried to get a McMansion on a starter home budget, and got caught in a bind that they should have seen coming.

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