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View Diary: Closely-Watched Court Decision Breaks Bad for Wall St. Has A Day of Reckoning Arrived? (154 comments)

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  •  The mixture would be after the fact (0+ / 0-)

    AFAIK. Customarily mortgage funding comes in lumps of no less than $250K, and usually in terms of millions and is usually parceled out and sold with like kinds of instruments, whether they conform or not. IOW, a broker will get specific pools of money with different sorts of performances, the 30 year fixed's aren't in the same bag as the 5 year ARMS, nor do they necessarily come from the same investor. Then you add the No Doc, Lo Doc, interest only, terms, interest rates, broker compensation on top of that and you basically have a menu of pools of money and what loans are good for each pool. It ALL has mortgage insurance unless somebody plonks 20% down.

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