great question. few things to understand from a macro level.
first – the $126M worth of mortgage backed securities has a ton of fluff wrapped in there. fees upon fees that the various wall streeters have added. interest, penalties etc.
second – just because they are forcing ownit to buy these back doesn’t mean that they are in default as a mortgage. it just means they’re in default as a mortgage backed security. that can occur from a number of things depending on how they were packaged and sold, the % they were paying the investors for their risk, and the market they are in. some packages can adjust in risk JUST BECAUSE their value drops lower than it was appraised. Most common reasons are, late pay, more than 30 days late, DTI (debt to income) ratio increase, or default/foreclosure/REO.
third – they will not and probably have not hit the “jackpot” a servicer usually is in touch with a homeowner as things in the foreclosure process progress.
fourth – dallas isn’t returning fwd’ing his emails and the hard money guys behind ownit CIVC say talk to him.
fifth – wall st is all about velocity and the bottom line,they won’t get anything out of ownit, but a nice carry fwd, so they’ll package the non-performings loans, consolidate the good ones and sell the bad ones off at 30 cents on the dollar.
b of a has part of ownit? didn’t read that, but they’ve acquired so many people who knows. merrill owns a solid piece, CIVC owns a chunk, and dallas owns a piece.
ownit is screwed and so are most in the subprime world.
they’re just not screwing home owner they’re really screwing the pensioners that have half their cash in these mortgage backed securities. in socialist and communist countries those pensions are everything.
things are going to get interesting.
thanks wall st. thanks idiot consumers. thanks highly leveraged sub prime guys.
