Refinancing Home Mortgage
In: Mortgage Loan
12 Sep 2010as securities backed by mortgages that are sold. Was it the bank or mortgage company issuing e primarily for transfer to an ad hoc or SIV, pool together and sell them? Or would they sell the rights to the mortgage should come to an investment bank and these funds together and sell them as mortgage-backed securities?
These are investment banks that securitized. Normally, when a bank or mortgage company mortgage had enough, they turn an investment bank and try to sell them again.
The biggest surprise was that investment banks have fallen into their trap. Although they are able, the vast majority of bonds were sold in various tranches, they have also created and took positions on synthetic CDOs (CDOs, which were usually much worse than the original CDO).
For example, Merrill Lynch a position on the $ 32000000000 synthetic CDOs over. bought about six months before the Bank of America, they sold that position for 22 cents on the dollar, but has also financed 70% of that amount to find a buyer. Would the buyer is not obligated to repay the loan if the losses higher than its $ 2000000000.
Therefore, most of the losses, banks are during the financial crisis experienced in mortgage-backed securities, but a side bet on the worst tranches of securities backed by mortgages, and the issuance of credit default swaps, the warranty, the synthetic CDOs.
This is about mortgage information questions.
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