A novice's primer of cwabs

[MIDSOUTH]

I only have myself to blame...but I am p.o.'d! I like to research and began looking into CWABS, mainly just to understand them...but I am sorry I did. All it did was raise more questions and infuriated me! So, my loan was securitized into CWAB 2003-4 in July 2003. At that time CW stated that ALL 1290 mortgage loans were current. The CWAB consisted of about 5% fixed rate mortgages; 2 yr arms (15%); 5 yr arms (about 80%). The prospectus defines the group of loans has "having blemishes".

However, Moody's gives the CWAB of 1290 loans a rating of Aaa (ratest as the highest with lowest credit risk)--even though in the prospectus CW notes that there are risks involved with these loans--blemishes and all. About 65% of the loans came from California and CW makes a point to note that the economy may have a downside and also potential for natural disasters. (wow...CW has a crystal ball or really knew what they were doing).

As I stated in a prior post, CW starts, within a month, reporting that some of the loans are 60-90 dys delinquent! Again, how can that be, when just a month prior, they report that ALL loans are current? Anyway, they stop reporting to SEC in Jan 2004 under Form 15d because the investors have dropped under 300. But during Aug 03-Dec 03 they are distributing millions of dollars monthly to the investors. All of a sudden, in Jan 04, all investors, but 4, bail and CW stops reporting to the SEC. By Aug 2004, there are only 919 loans left, with about 65-70 loans in foreclosure. However, there are probably at least 100-125 loans that just disappeared--no explanation.

By 2012, Moody's downgraded everyone of the CWAB differing types of loans(6 categories) still listed. Adjustable loans are ALL downgraded anywhere from Caa1-C and the only fixed rate subcategory left is now a Baa1. the weird thing is that I can not find the group that I strongly suspect my loan was in--it's the only category not listed.

Anyway, this whole thing stinks to high heaven. I wonder if this info is being used to deny people modifications? Really don't know where to find out who the actual 4 investors were from back in 2004--but i strongly suspect that CW securities was one of them--b/c they also filed nominating themselves as "principle" over the CWAB in 2004 and also underthe PSA, contracted to keep a certain portion of the CWAB.

Once you start reading thru your individual ABS/RMBS, the reality of how much money was made hits like a hammer. It kinda makes me want to rescue my loan....just to get it out of "their" clutches.

[TomEason]

MIDSOUTH

Thanks for sharing the results of your investigation, which I realize is painful.

Your narrative is indeed revealing, interesting, and didactic for CWABS novices (which is just about everybody, LOL).

[MIDSOUTH]

Thanks Tom. One of your other users (can't think of the name right now) pointed me in the direction of the SEC filings...and I just couldn't help myself. Our current home and the previous one (1998) got "sold", pretty much after 1 year of "alleged ownership" but we have had about 3 homes before the change in the regulations. I'll never forget when our previous home mortgage was "sold". We were embarrassed! We thought we had done something wrong...I guess that is why I kinda latched onto trying to find out what this crap was all about. What an education...may not be pleasant, but at least I know how things REALLY work...thanks to this forum.

Gone are the days of "real property" and the American dream..we are nothing but serfs.