MORE BANK WRITE-DOWNS ON THE WAY – FAR MORE!

Posted on April 29th, 2008 in Daily Mortgage/Housing News - The Real Story

This is a superb read from Karl Denninger. But, not only do loans go back to the original lender if they have fraud like the writer mentions, they ALSO go back if they have a 1st payment default in the first 6 months following origination in most cases. Some lenders rep & warrant for up to a year. This report is a little light on the fraud associated with ‘Stated Income’ as well. Studies have shown that among stated income loans, 90% lied about their income upward.. 50% of those by more than 5% and 50% by more than 50%. Both 1st payment defaults and fraud are write down wildcards rarely addressed. – Best, Mr Mortgage

Tuesday, April 29, 2008 Caution: Mortgage Explosions Just Starting (And More)

If you think the mortgage mess is over, you’re sadly mistaken. If you’re operating under the premise that the losses have been (mostly) recognized and we are now going to see “write ups” somewhere down the road, you’re more than wrong.You’re delusional. Truth is that the real damage hasn’t even begun. That damage is going to come from…. drum roll…… fraud.
http://market-ticker.denninger.net/2008/04/caution-mortgage-explosions-just.html

3 Responses to “MORE BANK WRITE-DOWNS ON THE WAY – FAR MORE!”

  1. Like UBS on may 6th 2008: another loss of 11 billion and letting go another 5,500 employees. The loss are so bad at UBS (Union des Banques Suisses) that Switzerlant GDP has cratered 5% this year.

  2. Like UBS on may 6th 2008: another loss of 11 billion and letting go another 5,500 employees. The losses are so bad at UBS (Union des Banques Suisses) that Switzerland’s GDP has cratered 5% this year. This comppany is a running gag. But it’s not funny.

  3. The trick is to do like asiatic bankers do. They did the same thing in Japan for 15 years. You announce the bad news when nobody is listening. Keeping up appearances at all costs. Fannie Mae and Labour Department statisticians are experts in that field. Wonder what these guys and gals will do when the price of oil goes to 200$ a barrel ? Hide the losses for 50 years ?

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