Relevant:
- Fitch to Release Mortgage Models as Lewis Ranieri's Shellpoint Complains
- Ranieri Becomes Victim of Crisis as Franklin Seized
- Ranieri Pursuing $1 Billion Distressed Mortgage Fund
- Foreclosures Mean ‘Big Leg Down’ for U.S. Housing, Ranieri Says
- Obama administration pushes banks to make home loans to people with weaker credit
2010-07-24 — wsj.com
The father of mortgage securitization wants people to know his creation isn’t to blame for the housing crash.
The practice of turning mortgage loans into bonds may have helped to fuel a binge in risky lending in the middle of the past decade, but before then, the model worked just fine, Lewis Ranieri argued in a letter to the Obama administration this week.
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Comments:
catherine at 06:28 2010-07-25 said:
omg..............IT IS THE REASON THE WORLD IS QUAKING.................the exact same thing happened in the savings and loan crisis, housing wasn't worth much and the people that wrote the mortgages started failing...............bank failed end of story................ after securitizing this crap ON COLLATERAL falling 50-65% of the value of the security (multiplied hundreds of times over) is taking us for a big fat ride on THE DEPRESSION TRAIN!!!!!!!!!!!! no securitization and this would be a normal recession............ securitizing this crap up to 500 trillion is a ride on the D-TRAIN.................... Permalinkadd a comment | go to forum thread
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