[AdamSelene235]

Did yall catch this:

The harshest punishment the regulator could bring is to bar Freddie Mac (NYSE:FRE - News) and its sister firm, Fannie Mae (NYSE:FNM - News), from doing more business with offending firms, but to take such action the regulators may have to show that the actions by the Wall Street firms "endangered the safety and soundness of one of the big mortgage-finance companies," the paper said.

Gee, I dunno if that would be such a good idea.

That would be bad

[imawit]

Looks like yields and mtg rates may have another party.

Barring participation ? That would be interesting to ponder. They'd have to clip coupons on their mtg portfolios as they stand. If they're set up in a profit yielding posture right now, they could show profitability for 6 months to a year without making new mtgs and selling them to the GSE's. But, that profit stream would slowly whither as payoff ('paid in full', "PIF', industry jargon) slowly or even dramatically decreased their portfolio.

They'd just have to find another financial vehicle to scam I guess.

[imawit]

Oh, by the way, WAMU broke loose on their payables but only after 60 daze. BofA is going past 180 daze.

Inside rumor is that WAMU, the largest mtg portfolio is going into selling part of it off for cash. Remember they lost $271m in Q3. This will hurt their profit stream but give them cash which they may need at this time.

This could be a wholotta fun. Try selling a 5% mtg for 30 yrs into a 6% environment. No wonder they're all pusing ARMS, don't think that it's the public demanding this. Pulbic wants lowest fixed in general !

If they're hedging or derivatating (new word), they can still show a profit if they are on the right side. But I'm guessing that this is only on paper until the contracts conclude which may not be Dec 31, 2003.