Comments on: Financing The MBS Fix: The 800 Pound Gorilla

By: Houston Broker

Houston Broker — Fri, 26 Dec 2008 09:05:07 +0000

Well presented view. What we have , probably, is the possibility that since somehow the government will “own” the loan, there will be those will simply pay no one anything. If we think about it, we can see how it would work. The person in the home is already beng bailed out; if he/she chooses not to pay, will the government as bail-out agent evict the very person that was saved by government intervention. No, probably not! My guess is that the tax payers will absorb the loans not paid once this is done.

By: Housing and Gasoline News December 26, 2008 » Harry Tran’s Daily 101 » Blog Archive

Fri, 26 Dec 2008 04:29:07 +0000

[...] News Gambling industry turned on its heels due to economy The big 800 lb gorilla in the room Home prices fall at Depression rates AmEx will get saved IndyMac’s irregularities uncovered [...]

By: Aaarrrrrgggghhhh

Aaarrrrrgggghhhh — Tue, 23 Dec 2008 17:19:04 +0000

Assuming we can solve the problem highlighted by DeedIn Lieu, what happens when I find out the government is the holder of my mortgage and I stop paying? Now the government is leading the foreclosure charge? Who’s going to manage those properties if they do foreclose?

By: DeedInLieu

DeedInLieu — Tue, 23 Dec 2008 05:48:14 +0000

Can someone explain how the Government is going to “fix” this MBS mess when NOBODY knows who owns the MORTGAGE NOTE, the “trustee doesn’t if the assignment has never been recorded. Exactly who has the authority to “modify” a loan. This quagmire can only get worse with the direction it’s going with Paulson & Co. In my humble opinion the only thing I see is alot of posturing and power grabbing for control of vast amounts of taxpayer money.

By: BottomFisher

BottomFisher — Tue, 23 Dec 2008 05:04:53 +0000

You should get Oboma’s seat….seriously. Washington has lost it’s brains….if it ever had any…..we the taxpayers need a help now program.

By: catherine

catherine — Tue, 23 Dec 2008 00:00:52 +0000

Great article you are so right. When they were first talking modifications I was amazed. I knew that the customer had to be counseled and pre-approved and interviewed, etc., again to decide whether to do the mod or not.

The companies and government were acting like the “servicing” people were going to handle all that. Laugh out loud on that, they are to take the payment split it out and pay people, end of story. They were not hired as originators and that is the skill to requalify people for any kind of new financing. Then on the other hand they are freezing foreclosures, THE OTHER HALF OF THAT DEAL, THE INVESTOR IS YOUR GRANDMA’S PENSION PLAN, now what the hell are you doing????????????????

Their ignorance of the whole deal is going to cost 100 trillion and put us in the Depression hole for quite awhile…………

This repair program is like trying to prop up falling stock, we would never try, this is ridiculous…………….

By: John F. Head

John F. Head — Mon, 22 Dec 2008 22:49:06 +0000

What is missing from all this discussion, including the foregoing commentary, is that the banks don’t own the loans. Rather, these loans are in pools; it is the trustee of these pools with legal title. What the banks own are junior tranches — this is the real crap. But, an owner of a tranch, of whatever level of quality, doesn’t have any right to foreclose, foregive or renegotiate the terms.