I don’t know. I don’t think they can lose. Because let’s just say this thing continues for another 7-8 years. I think they have been on IO for about 6 years. Even if rates pop up, they can just close the loan. So, I think for them, this was the smartest thing to do. Now if 30 year comformings would drop to below 4, that’s a different story… Ah, one can dream…..[/quote]
I guess you are right since they have the bank roll to pay off at any time.
