Comments on: Kindergarten Cop Mortgages: 4 Reasons Why the Governator’s Foreclosure Plan Will Fail. http://www.doctorhousingbubble.com/kindergarten-cop-mortgages-4-reasons-why-the-governator%e2%80%99s-foreclosure-plan-will-fail/ How I Learned to Love Southern California and Forget the Housing Bubble Sat, 31 Jul 2010 22:55:07 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: exit http://www.doctorhousingbubble.com/kindergarten-cop-mortgages-4-reasons-why-the-governator%e2%80%99s-foreclosure-plan-will-fail/comment-page-1/#comment-2958 exit Sun, 25 Nov 2007 17:35:45 +0000 http://www.doctorhousingbubble.com/kindergarten-cop-mortgages-4-reasons-why-the-governator%e2%80%99s-foreclosure-plan-will-fail/#comment-2958 @WC: Tanta at Calculated Risk has perhaps the most sophisticated insider's view and explanation of many of these issues. As I understand it, there are covenants in most of the CDO and RMBS vehicles that trigger a sale should a certain percentage of the underlying loans either default, or, get subject to modification. So the political posturing about permitting modification is solely for the benefit of MSM. Shumer et al know that their bread is buttered by those firms which underwrote the various alphabet toxic soups. There can't be too many loans modified without sending the whole lot back to the originators, who are either now defunct (i.e. New Century) or teetering (CFC). And so who do you think will get stuck with the non-performing assets when CFC can't pay and Tangelo is basking on a yacht in the harbor of some Caribbean island with no extradition treaty? FRE and FNMA, of course... Maybe FHA. Ultimately, taxpayers. This will make Charles Keating and Lincoln Savings look like a white knight. @WC: Tanta at Calculated Risk has perhaps the most sophisticated insider’s view and explanation of many of these issues. As I understand it, there are covenants in most of the CDO and RMBS vehicles that trigger a sale should a certain percentage of the underlying loans either default, or, get subject to modification.

So the political posturing about permitting modification is solely for the benefit of MSM. Shumer et al know that their bread is buttered by those firms which underwrote the various alphabet toxic soups. There can’t be too many loans modified without sending the whole lot back to the originators, who are either now defunct (i.e. New Century) or teetering (CFC). And so who do you think will get stuck with the non-performing assets when CFC can’t pay and Tangelo is basking on a yacht in the harbor of some Caribbean island with no extradition treaty?

FRE and FNMA, of course… Maybe FHA. Ultimately, taxpayers. This will make Charles Keating and Lincoln Savings look like a white knight.

]]> By: Alberto http://www.doctorhousingbubble.com/kindergarten-cop-mortgages-4-reasons-why-the-governator%e2%80%99s-foreclosure-plan-will-fail/comment-page-1/#comment-2957 Alberto Sun, 25 Nov 2007 13:36:58 +0000 http://www.doctorhousingbubble.com/kindergarten-cop-mortgages-4-reasons-why-the-governator%e2%80%99s-foreclosure-plan-will-fail/#comment-2957 So that's why they call him the Terminator... So that’s why they call him the Terminator…

]]> By: Titan http://www.doctorhousingbubble.com/kindergarten-cop-mortgages-4-reasons-why-the-governator%e2%80%99s-foreclosure-plan-will-fail/comment-page-1/#comment-2950 Titan Sun, 25 Nov 2007 00:22:06 +0000 http://www.doctorhousingbubble.com/kindergarten-cop-mortgages-4-reasons-why-the-governator%e2%80%99s-foreclosure-plan-will-fail/#comment-2950 A full scale criminal investigation into this, by WHO? The criminals like Charles Shumer who take money from the big banks? HaHaHaHa! Thats a good one. We're freaking doomed! A full scale criminal investigation into this, by WHO? The criminals like Charles Shumer who take money from the big banks? HaHaHaHa!
Thats a good one. We’re freaking doomed!

]]> By: W.C. Varones http://www.doctorhousingbubble.com/kindergarten-cop-mortgages-4-reasons-why-the-governator%e2%80%99s-foreclosure-plan-will-fail/comment-page-1/#comment-2949 W.C. Varones Sat, 24 Nov 2007 23:22:52 +0000 http://www.doctorhousingbubble.com/kindergarten-cop-mortgages-4-reasons-why-the-governator%e2%80%99s-foreclosure-plan-will-fail/#comment-2949 Somebody <a href="http://wcvarones.blogspot.com/2007/11/please-explain.html" rel="nofollow">please explain</a> how this works: The servicers (Countrywide and others) don't own the mortgages any more. They have packaged them and sold them to Wall Street, pension funds, hedge funds, etc. How does Countrywide unilaterally declare that that 7% loan is now a long-term 2% loan? Surely the buyer has a right to put the loan back to Countrywide when the agreed terms are no longer in force? Somebody please explain how this works:

The servicers (Countrywide and others) don’t own the mortgages any more. They have packaged them and sold them to Wall Street, pension funds, hedge funds, etc. How does Countrywide unilaterally declare that that 7% loan is now a long-term 2% loan? Surely the buyer has a right to put the loan back to Countrywide when the agreed terms are no longer in force?

]]> By: edgar http://www.doctorhousingbubble.com/kindergarten-cop-mortgages-4-reasons-why-the-governator%e2%80%99s-foreclosure-plan-will-fail/comment-page-1/#comment-2943 edgar Sat, 24 Nov 2007 20:04:17 +0000 http://www.doctorhousingbubble.com/kindergarten-cop-mortgages-4-reasons-why-the-governator%e2%80%99s-foreclosure-plan-will-fail/#comment-2943 The gubbernator and the fed gub aren't that stupid, they are stalling for time. Why doesn't Der Gubbernator call for a property tax moratorium until prices recover? That's what I thought, they loved the housing bubble until it blew up in their faces. Don't worry about Arnie, he's loaded. The gubbernator and the fed gub aren’t that stupid, they are stalling for time. Why doesn’t Der Gubbernator call for a property tax moratorium until prices recover? That’s what I thought, they loved the housing bubble until it blew up in their faces. Don’t worry about Arnie, he’s loaded.

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