Congrats to Holder for Suing S&P

[g5000]

Google: "Credit enhancement" and give us another 6 pages of your wisdom

You learned a new phrase and think you are now being clever, but you are exposing your complete ignorance of the derivatives bubble. I discussed at length the credit enhancement features of the BISTRO CDO and how that feature of CDOs was completely destroyed in the years which followed BISTRO in answer to your question.

Just because you are too dense, and can only parrot a phrase you picked up somewhere along the way, don't blame me for your inability to comprehend the complexities of the derivatives bubble.

I've been in real estate capital markets far far far longer that you've been doing your Uber-Conservative act

LOLz Countrywide was Fannie's biggest loan originator

Then you were part of the problem. You were one of the idiots buying or selling the toxic securities without doing the proper due diligence. And judging by the low intelligence of your posts on this forum, this is not the least surprising. You swallowed the "credit enhanced" Kool-Aid you were given, just like the ratings agencies did. And to this day, you still believe it!

No wonder you are defending them.

Countrywide was a loan originator for more than the GSEs, and if you were honest you would have said so.

And if you were honest, you would have admitted the GSEs were less than 50 percent of the secondary market by 2005.

The big five brokers established their own supply chain of mortgage brokers to insure they would have enough product to roll into their CDOs. And these brokers, to meet that demand, originated loans which had no due diligence done on them.

If you were really in the market, you would know this. But you are drinking the piss and constantly attempt to deflect away from these facts with non sequitur bullshit about a border patrol agent and the GSEs.

 

[CrusaderFrank]

You learned a new phrase and think you are now being clever, but you are exposing your complete ignorance of the derivatives bubble. I discussed at length the credit enhancement features of the BISTRO CDO and how that feature of CDOs was completely destroyed in the years which followed BISTRO in answer to your question.

Just because you are too dense, and can only parrot a phrase you picked up somewhere along the way, don't blame me for your inability to comprehend the complexities of the derivatives bubble.

I've been in real estate capital markets far far far longer that you've been doing your Uber-Conservative act

LOLz Countrywide was Fannie's biggest loan originator

Then you were part of the problem. You were one of the idiots buying or selling the toxic securities without doing the proper due diligence. And judging by the low intelligence of your posts on this forum, this is not the least surprising. You swallowed the "credit enhanced" Kool-Aid you were given, just like the ratings agencies did. And to this day, you still believe it!

No wonder you are defending them.

Countrywide was a loan originator for more than the GSEs, and if you were honest you would have said so.

And if you were honest, you would have admitted the GSEs were less than 50 percent of the secondary market by 2005.

The big five brokers established their own supply chain of mortgage brokers to insure they would have enough product to roll into their CDOs. And these brokers, to meet that demand, originated loans which had no due diligence done on them.

If you were really in the market, you would know this. But you are drinking the piss and constantly attempt to deflect away from these facts with non sequitur bullshit about a border patrol agent and the GSEs.

"GSEs were less than 50 percent of the secondary market by 2005...." still marks then as the financial binary black holes at the epicenter of the meltdown.

They set the standard for AAA rated paper!

They started accepting "No Income No asset" paper and putting an AAA rating on it!

They turned subprime mortgages into AAA rated securities. Did Wall Street go along? Of course!

The main problem is that the government is involved in the mortgage in the first place. Let the Wall Street guys put up their money and take their chances, with no government skewing the game

Also, I think a lot of us are tired of your pee fetish

 

[Mr. Shaman]

I've been in real estate capital markets far far far longer that you've been doing your Uber-Conservative act

LOLz Countrywide was Fannie's biggest loan originator

Then you were part of the problem. You were one of the idiots buying or selling the toxic securities without doing the proper due diligence. And judging by the low intelligence of your posts on this forum, this is not the least surprising. You swallowed the "credit enhanced" Kool-Aid you were given, just like the ratings agencies did. And to this day, you still believe it!

No wonder you are defending them.

Countrywide was a loan originator for more than the GSEs, and if you were honest you would have said so.

And if you were honest, you would have admitted the GSEs were less than 50 percent of the secondary market by 2005.

The big five brokers established their own supply chain of mortgage brokers to insure they would have enough product to roll into their CDOs. And these brokers, to meet that demand, originated loans which had no due diligence done on them.

If you were really in the market, you would know this. But you are drinking the piss and constantly attempt to deflect away from these facts with non sequitur bullshit about a border patrol agent and the GSEs.

"GSEs were less than 50 percent of the secondary market by 2005...." still marks then as the financial binary black holes at the epicenter of the meltdown.

They set the standard for AAA rated paper!

They started accepting "No Income No asset" paper and putting an AAA rating on it!

They turned subprime mortgages into AAA rated securities. Did Wall Street go along? Of course!

The main problem is that the government is involved in the mortgage in the first place.

Bullshit!!!

It was ALWAYS about the....

.....BONU$E$!!!!!

May 12, 2010

"The U.S. Senate voted Wednesday to ban certain bonus payments to mortgage brokers and loan officers, cutting off what experts have called one of the key causes of the nation's mortgage meltdown.

The little-known bonuses were paid for home loans that could be sold at higher prices because they carried higher interest rates and other more onerous terms than those for which the borrowers were qualified.

Amending financial reform legislation as it makes its way through Congress, the Senate also voted to outlaw stated-income mortgages — loans made without using tax documents, pay stubs or bank records to verify that borrowers actually earn as much as they say they do.

These so-called liar loans and the bonus payments are widely regarded as key factors leading to the subprime lending debacle that snowballed into the deep recession. Critics described the bonuses as thinly disguised kickbacks for steering borrowers into burdensome mortgages.

"Deceptive mortgage practices like hidden steering payments directly led to the Wall Street meltdown and resulted in millions of families losing their homes," said Sen. Jeff Merkley (D-Ore.), who sponsored the ban on broker bonuses for higher-interest loans.

The vote to ban the practices was 63 to 36.

Most subprime loans, along with other mortgages based on loose standards during the housing boom, were sold into the secondary market, then pooled and packaged to back mortgage bonds.

The securities became known as toxic when mounting losses on them threatened to poison the entire financial system.

Mortgage brokers opposed the legislation. They argued that it was flawed because although the measure restricts bonuses at the front end, it would still permit Wall Street firms and other loan investors to pay more for bundled mortgages with higher interest rates."​

​

 

[Mr. Shaman]

February 5, 2013

Holder: "Egregious" Conduct By McGraw-Hill, S&P​

"The U.S. is seeking as much as $5 Billion in penalties from McGraw-Hill Cos. and its Standard & Poor’s unit as punishment for inflated credit ratings that Attorney General Eric Holder said were central to the worst financial crisis since the Great Depression.

Holder, flanked today in Washington by state attorneys general who also filed suit against the New York-based company, said S&P made false representations, concealed facts and manipulated ratings criteria and credit models for profit.

“This alleged conduct is egregious -- and goes to the very heart of the recent financial crisis,” Holder said.

S&P rated more than $2.8 trillion of residential mortgage-backed securities and about $1.2 trillion of collateralized-debt obligations from September 2004 through October 2007, according to the complaint. S&P downplayed the risks on portions of the securities to gain more business from the investment banks that issued them, the U.S. said."

.

.

.

.

*

For Teabaggers benefit -> Egregious: outstandingly bad; shocking​

 

[CrusaderFrank]

Arming Mexican drug gangs =/= not egregrious

 

[g5000]

I've been in real estate capital markets far far far longer that you've been doing your Uber-Conservative act

LOLz Countrywide was Fannie's biggest loan originator

Then you were part of the problem. You were one of the idiots buying or selling the toxic securities without doing the proper due diligence. And judging by the low intelligence of your posts on this forum, this is not the least surprising. You swallowed the "credit enhanced" Kool-Aid you were given, just like the ratings agencies did. And to this day, you still believe it!

No wonder you are defending them.

Countrywide was a loan originator for more than the GSEs, and if you were honest you would have said so.

And if you were honest, you would have admitted the GSEs were less than 50 percent of the secondary market by 2005.

The big five brokers established their own supply chain of mortgage brokers to insure they would have enough product to roll into their CDOs. And these brokers, to meet that demand, originated loans which had no due diligence done on them.

If you were really in the market, you would know this. But you are drinking the piss and constantly attempt to deflect away from these facts with non sequitur bullshit about a border patrol agent and the GSEs.

"GSEs were less than 50 percent of the secondary market by 2005...." still marks then as the financial binary black holes at the epicenter of the meltdown.

They set the standard for AAA rated paper!

They started accepting "No Income No asset" paper and putting an AAA rating on it!

They turned subprime mortgages into AAA rated securities. Did Wall Street go along? Of course!

The main problem is that the government is involved in the mortgage in the first place. Let the Wall Street guys put up their money and take their chances, with no government skewing the game

Also, I think a lot of us are tired of your pee fetish

Then stop drinking so much of it.

As for your claim the GSEs led the race to the bottom, utter bullshit. The GSEs did not lead the ramp up of subprime lending, Wall Street did.

Not exactly prime: the secondary market for loans not in prime condition is growing.

Wall Street has gotten involved in subprime securitization "in a very large way," says Brendan Keane, managing director of CS First Boston, New York. * CSFB and many of its peers on Wall Street have become subprime buyers in recent years. The group includes Merrill Lynch, Lehman Bros., Morgan Stanley, Greenwich Capital, UBS and Bank of America. More recently, Goldman Sachs has entered the competition through its purchase of Household International's collateral, which it securitized for the firm.

All this investor interest in subprime loans is propelled by the mountain of money piling up on the sidelines of the stock market, fearing entry into that uninviting terrain.

"Mutual funds, hedge funds, private-equity funds are sitting on a tremendous amount of liquidity," says Kenneth Slosser, managing director of investment banking at Friedman, Billings, Ramsey & Co., Inc., Irvine, California.

"These companies have a lot of money to invest; they're waiting for the right opportunity to put the money to work, particularly in the financial services value sectors. As we start to see the bottom of this market," more investing will take place, Slosser predicts.

As I said, Wall Street saw all those fees all that investor money could provide if they would loosen up their lending standards. And there it is, straight from the horse's mouth.



Keep Eyes Fixed on Your Variable-Rate Mortgage

Someone now paying $350 a month for a $100,000 interest-only loan could be facing payments of $680 both because of the shift to the higher rate and because the borrower would have to start paying off the principal as well as the interest.

“You need a couple of good pay raises in order to afford it,” said Mark Fleming, chief economist with CoreLogic, which develops risk models for the mortgage lenders. “It’s pretty hard to deal with a payment shock of 80 percent or 90 percent,” he said.

The mortgage industry is not worried about payment shock. Why?

“It offers an opportunity,” said Brad Brunts, managing director of portfolio management at Citi Mortgage, a unit of Citigroup.

He, like others in the mortgage industry, sees the higher payments as a boost to the flagging mortgage refinancing business.

Again, straight from the horse's mouth. It's all about the fees. Lending fees, servicing fees, refinancing fees. Fees, fees, fees.

That's what propelled the derivatives bubble.