Someone please explain this rate lock thing to me!!!

[bsrsharma]

Seems simple to me. Countrywide (and others) is telling the security holder that you get paid some or none, what do you prefer. Since this plan was hatched with treasury and probably FED’s blessings to prevent a likely systemic meltdown, what options does the security owner have? At this point, most MBS/CMO/CDO holders will be glad to see any pennies on $. Just recently, ETrade sold a pile for 27 cents on $; that settles the precedent on what such papers are worth. It is all downhill from 27% now.

[anxvariety]

radelow, do you pay taxes? Me thinks that’s how much of this will get sorted out.

[anxvariety]

radelow, do you pay taxes? Me thinks that’s how much of this will get sorted out.

[anxvariety]

radelow, do you pay taxes? Me thinks that’s how much of this will get sorted out.

[anxvariety]

radelow, do you pay taxes? Me thinks that’s how much of this will get sorted out.

[anxvariety]

radelow, do you pay taxes? Me thinks that’s how much of this will get sorted out.

[gn]

bsrsharma is right.

The plan will be put together by a “coalition” that include:
lenders, servicers, investors … They all have a stake in this. My guess is that they will modify the original contracts to allow for the rate freeze.

As always, “the devil is in the details”. Until we know the details, we won’t know how much of a difference will the plan make.

[gn]

bsrsharma is right.

The plan will be put together by a “coalition” that include:
lenders, servicers, investors … They all have a stake in this. My guess is that they will modify the original contracts to allow for the rate freeze.

As always, “the devil is in the details”. Until we know the details, we won’t know how much of a difference will the plan make.

[gn]

bsrsharma is right.

The plan will be put together by a “coalition” that include:
lenders, servicers, investors … They all have a stake in this. My guess is that they will modify the original contracts to allow for the rate freeze.

As always, “the devil is in the details”. Until we know the details, we won’t know how much of a difference will the plan make.

[gn]

bsrsharma is right.

The plan will be put together by a “coalition” that include:
lenders, servicers, investors … They all have a stake in this. My guess is that they will modify the original contracts to allow for the rate freeze.

As always, “the devil is in the details”. Until we know the details, we won’t know how much of a difference will the plan make.

[gn]

bsrsharma is right.

The plan will be put together by a “coalition” that include:
lenders, servicers, investors … They all have a stake in this. My guess is that they will modify the original contracts to allow for the rate freeze.

As always, “the devil is in the details”. Until we know the details, we won’t know how much of a difference will the plan make.

[SD Realtor]

Agreed with gn and bsr… Think about it… the investors have the following alternatives… Watch the investments they made go basically down the tubes or accept a much lower rate of return with no gaurantee of what will happen in the future. The investors have absolutely no (or very little) recourse here. Even if they went all the way back to prove that the orginator was at fault during the underwriting process and tried to get the loans returned eventually the lender will just go belly up (see new century) so that path is dead as well.

So the alternative is to modify, stretch out the timeline and hope in 5 years the climate has changed.

Seems like a no brainer to me.

SD Realtor

[SD Realtor]

Agreed with gn and bsr… Think about it… the investors have the following alternatives… Watch the investments they made go basically down the tubes or accept a much lower rate of return with no gaurantee of what will happen in the future. The investors have absolutely no (or very little) recourse here. Even if they went all the way back to prove that the orginator was at fault during the underwriting process and tried to get the loans returned eventually the lender will just go belly up (see new century) so that path is dead as well.

So the alternative is to modify, stretch out the timeline and hope in 5 years the climate has changed.

Seems like a no brainer to me.

SD Realtor

[SD Realtor]

Agreed with gn and bsr… Think about it… the investors have the following alternatives… Watch the investments they made go basically down the tubes or accept a much lower rate of return with no gaurantee of what will happen in the future. The investors have absolutely no (or very little) recourse here. Even if they went all the way back to prove that the orginator was at fault during the underwriting process and tried to get the loans returned eventually the lender will just go belly up (see new century) so that path is dead as well.

So the alternative is to modify, stretch out the timeline and hope in 5 years the climate has changed.

Seems like a no brainer to me.

SD Realtor

[SD Realtor]

Agreed with gn and bsr… Think about it… the investors have the following alternatives… Watch the investments they made go basically down the tubes or accept a much lower rate of return with no gaurantee of what will happen in the future. The investors have absolutely no (or very little) recourse here. Even if they went all the way back to prove that the orginator was at fault during the underwriting process and tried to get the loans returned eventually the lender will just go belly up (see new century) so that path is dead as well.

So the alternative is to modify, stretch out the timeline and hope in 5 years the climate has changed.

Seems like a no brainer to me.

SD Realtor

[Author]

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