Subprime mortgage ??

[gotmilk]

I flip commercial paper to private trust company buyers and some of the paper we were getting is no longer wanted. My buyers pretty much will no longer buy asset backed paper.

 

[gotmilk]

Countrywide is supposedly filing BK....

They sold a hella lot of CD's in the last 7 days.....I'd be shocked if they file versus maybe selling part of their portfolio

 

[gjohnson5]

Well , I think some of these lenders giving loans to people at 30% interest need to fall
These predatory lenders prey on people for profits

 

[calveless wonder]

They sold a hella lot of CD's in the last 7 days.....I'd be shocked if they file versus maybe selling part of their portfolio

I thought the lack of liquidity right now was their main issue?

 

[calveless wonder]

Well , I think some of these lenders giving loans to people at 30% interest need to fall
These predatory lenders prey on people for profits

highest rate you will see on a residential loan is 12-13%. And that's hard equity..meaning they probably have no job, or are about to go into foreclosure or something similar.

give me a break that these lenders are predatory and the people are victims. granted, there have been so many shady brokers and salespeople in the last few years (especially during the boom, where any joe schmoe could come in and make money..and do terrible things to their clients) but at the end of the day the paperwork explains everything. fact is, a large part of america lives above their means and is completely irresponsible wtih their finances. there is a price to pay

interest rates are calculated on the risk of the borrower....and margins. I.e. what it can yield on the secondary market, and what offsets <x> amount of defaulted/foreclosure loan.

 

[gjohnson5]

I mean home loans (well you say home loans don't apply), car loans , payday loans, creidt card companies and all

If a large part of america lives above thier means then why do people go out of thier way to create speculative loans at high interest knowing they have trouble paying thier bills...

You deserve what you get the same as they do...

highest rate you will see on a residential loan is 12-13%. And that's hard equity..meaning they probably have no job, or are about to go into foreclosure or something similar.

give me a break that these lenders are predatory and the people are victims. granted, there have been so many shady brokers and salespeople in the last few years (especially during the boom, where any joe schmoe could come in and make money..and do terrible things to their clients) but at the end of the day the paperwork explains everything. fact is, a large part of america lives above their means and is completely irresponsible wtih their finances. there is a price to pay

interest rates are calculated on the risk of the borrower....and margins. I.e. what it can yield on the secondary market, and what offsets <x> amount of defaulted/foreclosure loan.

 

[gotmilk]

I thought the lack of liquidity right now was their main issue?

They took out almost $12 B in their last line of credit. Have almost $22 Billion in deposits just from account holders with a minimum $1ook per account. Plus, offered a higer interest rate to anyone willing to open a new cd.

They still need to sell more notes to cover themselves just in case though....and no one is willing to buy those notes (except ole Warren since he's not using debt to puchase debt)

 

[dead_reggin_storage_fashi]

we are not going BK

(C.F.C that is)

holding strong...

we use that 11.5 Billion dollar line to fund our own loans now.

sad too see peeps getting fired recently and I am one step away from being a SL/VP...

things that suck now for me

1. no one has equity in their home
2. guidelines are fucking tight
3. we have a bad name now so this sucks
4. interest rates are up

and within internal
5. new software upgrades are not working (so many bugs)
6. alll upper management only knows the good days so they never been knee deep in shit

 

[billfred]

So how does one make money of these serious of misforunate events?

In other words, which stocks would you short??

 

[jnevin]

Yeah - but what abou the majors? Wells Fargo, BOA, Chase

Anyone big going to get pulled in?

Actual banks won't be hit as hard, but it's affecting the nation's and the world's economy. The worst part is still coming. All of these subprime borrowers that have mortgages that will adjust in the next few years are screwed. Guidelines on conforming loans will probably tighten, and most lenders have done away with their alt-a products, which will leave these people with usually high debt ratios in loans that will jump 1.5-2% every six months. If a lot of lenders saw people go into default in the last few years, it's only going to get worse when the people in these loans can't refinance out of them. It's really a mess. I lost 2 jumbo loans today because of changing guidelines. Lenders are pulling their reduced doc (stated but able to show liquid assets) and probably soon pulling their stated/ stated programs. Tons of people aren't going to get loans, builders will suffer, laborers won't be working, and strippers will ultimately be the ones to suffer. I think half of the people shamelessly wasting money at strip clubs are 21-25 year old loan officers that just had a huge payday and think the money will come forever.