Loan Modification Forum - LoanSafe.org - View Single Post - Final Housing Bill Passes House, Bush to Sign into Law

AZ Meltdown · 07-28-2008, 09:40 PM

I certainly don't know or understand much of the murky world of wall street finance, but if lenders are really not taking a big hit with foreclosures etc why are they dumping those mortgage assets for pennies on the dollar?

Merrill Lynch today dumping 30.6 billion in face value mortgage assets for 6.7 billion. That is 22 cents on the dollar! Actually less than that since they had to financed 75% of the deal. And these assets were pre 2005 and supposedly better than the later vintage.

And if a loan does not have PMI is it still somehow insured?

Please explain.

07-28-2008, 09:40 PM	#58 (permalink)
AZ Meltdown Senior Member Join Date: Apr 2008 Posts: 129 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Final Housing Bill Passes House, Bush to Sign into Law I certainly don't know or understand much of the murky world of wall street finance, but if lenders are really not taking a big hit with foreclosures etc why are they dumping those mortgage assets for pennies on the dollar? Merrill Lynch today dumping 30.6 billion in face value mortgage assets for 6.7 billion. That is 22 cents on the dollar! Actually less than that since they had to financed 75% of the deal. And these assets were pre 2005 and supposedly better than the later vintage. And if a loan does not have PMI is it still somehow insured? Please explain. Last edited by AZ Meltdown; 07-28-2008 at 09:44 PM..