Tag Archives: asset backed securities

Politicians From Both Sides Of The Aisle Push For Looser Mortgage Rules

One reason for the great housing collapse was that many of those who originated mortgage loans did not have a stake in seeing that such loans were paid back. They originated the mortgage loans and then quickly sold them. The … Continue reading

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Should Banks Own A Stake In The Mortgage Loans They Originate?

One of the causes of the housing crash was that many lenders who made mortgage loans quickly resold them and thus had no stake in those loans getting paid off. Thus, these lenders had a perverse incentive to make as … Continue reading

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What Is Securitization?

The biggest reason loans are hard to get these days is that nobody wants to buy securities backed by American home mortgages, unless those mortgages are guaranteed by the U.S. government. Wikipedia says: “Securitization is the financial practice of pooling … Continue reading

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New Regulations To Promote More Accurate Lending Risk

Credit rating agencies were spectacularly wrong in the past few years when they tried to assess the worth of mortgage-backed securities. When thousands of home owners can no longer afford to send in their monthly mortgage payments, all the fancy … Continue reading

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The UK Turnaround

From the Daily Telegraph: In the US, there was already a large, liquid market in asset-backed securities – debt securities backed by pools of assets, most commonly mortgages, credit card debt and car loans. Attempts were being made to replicate … Continue reading

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Mortgage Bonds

NEW YORK, May 28 (Reuters) – Rising issuance of Fannie Mae and Freddie Mac mortgage-backed securities has pushed the share of the debt in a key bond index to record heights in recent months, presenting new challenges to investors. The … Continue reading

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