interesting read on the Chase 9 billion fine(and not 14 like we've been told)

[DCal430]

NM

 

[DCal430]

Please show me the specific pools that evidence this rate because I find it a bunch of bullshit exaggeration.

In fact, when I get to work Monday, I'll ask my agency RMBS PM, who manages many billions of agency and non-agency mortgages (and has won the Lipper award for several years) whats the worst pool he's ever seen.

I made a correction it should have been 35-40% total default, still very high. These are purchase money loans only though from low income people. This was a special program to help low income families afford homes, that FNMA participated in. Also these are not publicly traded MBSes, we hold these FNMA securities.

 

[Jeff7]

What a joke that no perp walks happend out of that mess. They comitted fraud and since they are so big nobody will do anything against it. I have a feeling this same crap will happen all over again. If major executives had been frogged marched out the front door of their banks offices in handcuffs that would have made a impression on the rest of them.

Impressions:

- Wow, that guy must have done something to piss off the wrong person in Washington. I should be ok though.

- Huh, I guess he didn't make a very good offer for an out-of-court settlement. I should find out how much was offered and to whom it was.



"Oh shit, I might go to jail myself" isn't likely to cross their minds.

 

[LegendKiller]

I made a correction it should have been 35-40% total default, still very high. These are purchase money loans only though from low income people. This was a special program to help low income families afford homes, that FNMA participated in. Also these are not publicly traded MBSes, we hold these FNMA securities.

Still bullshit.

1. There isn't a single conforming loan program that has a 35-40% default rate. Not a single one and I challenge you to provide any shred of evidence to the contrary.

2. Mortgages aren't securities. Spec pools aren't securities. Show me the proof.