Risk to borrowers...

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Submitted by DiveUrge on February 22, 2006 - 10:25am

Check this atricle out:

http://www.usatoday.com/money/perfi/hous...

The following strikes me as entirely disconnected from reality.

<<"In a number of areas, particularly on the coasts, they have a high risk of price declines in the next two years," says Mark Milner, chief risk officer of PMI.

"These non-traditional loans transfer risk to the borrower," Milner says.>>

What is this guy talking about and where can I get a job as a chief risk officer? At ZERO DOWN exactly what risk is the borrower taking? All that’s really at risk is a down payment so the risk is by definition ZERO with ZERO DOWN!

Truly remarkable.

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Somehow the material I tried
Submitted by DiveUrge on February 22, 2006 - 10:28am.

Somehow the material I tried to post was removed. Here you go!

"In a number of areas, particularly on the coasts, they have a high risk of price declines in the next two years," says Mark Milner, chief risk officer of PMI.

"These non-traditional loans transfer risk to the borrower," Milner says."

The risk is transferred to
Submitted by powayseller on February 22, 2006 - 5:35pm.

The risk is transferred to the mortgage holder, or, more typically, the MBS holder, i.e the pension fund and investor.

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