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Ford Motor Co. Message Board

  • sappjrk sappjrk Aug 13, 2009 11:48 AM Flag

    Ok, mortage crises?

     

    person A loans person B 10 dollars on an asset woth 10 dollars some time ago

    Today that asset is worth 5 dollars

    Person A has a serious issue with his balance sheet
    TARP comes to the rescue

    Person B is in a world of pain

    there

    This topic is deleted.
    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Did anybody notice person V posted solid factual links?

    • I know for a fact Person W did not receive any medals.

    • Person S starts thread about mortgage crisis with simpleton 'person A and Person B' example. when Person V posts actual facts, Person S desperately tries to obfuscate the facts and change subjects. Besides being offtopic, Person S's posts really make no sense.

    • Person A, berated by Person G, encouraged, protected and funded by Person W lowers his lending standards because he knows he can take his profit and sell the risk to unsuspecting Person C and GSE's


      "The originate-to-distribute model seems to have contributed to the loosening of underwriting standards in 2005 and 2006. When an originator sells a mortgage and its servicing rights, depending on the terms of the sale, much or all of the risks are passed on to the loan purchaser. Thus, originators who sell loans may have less incentive to undertake careful underwriting than if they kept the loans. Moreover, for some originators, fees tied to loan volume made loan sales a higher priority than loan quality. This misalignment of incentives, together with strong investor demand for securities with high yields, contributed to the weakening of underwriting standards.

      "


      http://www.traigerlaw.com/publications/traiger_hinckley_llp_cra_foreclosure_study_1-7-08.pdf

    • Person A is Banker, who Sold the loan & his Bank still got bailed out for making 'NO-DOC' loans.

      Person A still in Business too......
      Bushed Bailed them out in first installment of 350B in 2008.


      Person A sold loans to Company A on Wall ST - Who packaged loans to other countries & promised them that loans were backed by US Govt.

      Company A got BAILED out by TARP funds too.

      Company A wants to give Guaranteed Bonuses to ALL of its employees who bundled this paper & sold it OVERSEAS with the LIE that it was Backed with US Govt Assurances.

      Best way out of this is to let Company A DIE by Market forces because there was no Govt Assurance.

      But BUSH/Paulson wouldn't let company A die.. but they did let Bear Sterns Die..let Lehman Brothers Die.. Paulson formerly at Goldman Sachs was competing with Lehman Brothers & Bear Sterns.

      Paulson over his 30 Year history made plenty of money doing the same thing that ALL company A's do in this discussion.

      What makes him any different now? His 300M pension was stilled holed up at Goldman Sachs before he made the competition cease to exist.

      Still trust the former Secy of the Treasury?

    • Person W helps his "Ownership Society" policy by increasing liquidity in the MBS Market by forcing GSEs D and E to buy more low income home loans. Person W also relaxes Net Capital rule and borrowed billions flows into the MBS market.


      http://www.huduser.org/datasets/gse/gse2005.pdf


      In November 2004 HUD issued a Final Rule that established new housing goal levels for Fannie Mae and Freddie Mac for calendar years 2005 through 2008.....Under the 2004 Final Rule, the housing goals will increase gradually over the 2005-08 period

    • Sapp, I see you still determined to ignore the facts.

      Person A loaned person B money for a mortgage. Person B could not afford the house so instead of denying person B, person A gave person B a no doc loan.


      "Another form of easing facilitated the rapid rise of mortgages that didn't require borrowers to fully document their incomes. In 2006, these low- or no-doc loans comprised 81 percent of near-prime, 55 percent of jumbo, 50 percent of subprime and 36 percent of prime securitized mortgages.”

      http://www.dallasfed.org/research/eclett/2007/el0711.html

 
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