Icantbelieveitsnotbutter Posted February 29, 2008 Share Posted February 29, 2008 An analyst points out, from the Fannie Mae 10Q.... "The total number of loans we purchase from MBS trusts is dependent on a number of factors, including management decisions about appropriate loss mitigation efforts, the expected increase in loan delinquencies within our MBS trusts resulting from the current adverse conditions in the housing market and our need to preserve capital to meet our regulatory capital requirements. For example, we recently introduced a new HomeSaver Advance initiative, which is a loss mitigation tool that we began implementing in the first quarter of 2008. HomeSaver Advance provides qualified borrowers with an unsecured personal loan in an amount equal to all past due payments relating to their mortgage loan, allowing borrowers to cure their payment defaults under mortgage loans without requiring modification of their mortgage loans. By permitting qualified borrowers to cure their payment defaults without requiring that we purchase the loans from the MBS trusts in order to modify the loans, this loss mitigation tool may reduce the number of delinquent mortgage loans that we purchase from MBS trusts in the future and the fair value losses we record in connection with those purchases." So we take all the payments arrears, reclassify it as new unsecured lending and we have growth in lending and falling arrears. Problem solved. Not. Quote Link to comment Share on other sites More sharing options...
Guest tbatst2000 Posted February 29, 2008 Share Posted February 29, 2008 An analyst points out, from the Fannie Mae 10Q...."The total number of loans we purchase from MBS trusts is dependent on a number of factors, including management decisions about appropriate loss mitigation efforts, the expected increase in loan delinquencies within our MBS trusts resulting from the current adverse conditions in the housing market and our need to preserve capital to meet our regulatory capital requirements. For example, we recently introduced a new HomeSaver Advance initiative, which is a loss mitigation tool that we began implementing in the first quarter of 2008. HomeSaver Advance provides qualified borrowers with an unsecured personal loan in an amount equal to all past due payments relating to their mortgage loan, allowing borrowers to cure their payment defaults under mortgage loans without requiring modification of their mortgage loans. By permitting qualified borrowers to cure their payment defaults without requiring that we purchase the loans from the MBS trusts in order to modify the loans, this loss mitigation tool may reduce the number of delinquent mortgage loans that we purchase from MBS trusts in the future and the fair value losses we record in connection with those purchases." So we take all the payments arrears, reclassify it as new unsecured lending and we have growth in lending and falling arrears. Problem solved. Not. Holy cow batman, that's quite a shocker. I suppose they would argue that it costs them less money to do this than to take back the loans in total but, even so, it's rather a departure from their original 'secured mortgage lending' only remit. Quote Link to comment Share on other sites More sharing options...
WSG Posted February 29, 2008 Share Posted February 29, 2008 So we take all the payments arrears, reclassify it as new unsecured lending and we have growth in lending and falling arrears. Problem solved. Not. genius...sheer genius Who thought that scheme up Milo Minderbinder Quote Link to comment Share on other sites More sharing options...
South Lorne Posted February 29, 2008 Share Posted February 29, 2008 .... HomeSaver Advance provides qualified borrowers with an unsecured personal loan in an amount equal to all past due payments relating to their mortgage loan, allowing borrowers to cure their payment defaults under mortgage loans without requiring modification of their mortgage loans. ...feed the junkie his habit....that way you become a drug dealer.... Quote Link to comment Share on other sites More sharing options...
ParticleMan Posted February 29, 2008 Share Posted February 29, 2008 ... a bit further in it reassures us that boot production goes from strength to strength. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.