[peace with honor]

I am a Mortgage Banker, if these MORONS acheive this BS, investors in MBS WILL requrie higher interst rates to protect their invesment, the result would be HIGHER MORTGAGE RATES

[nomorelurker]

The result will be much higher down payment requirements and some form of prepayment on the loan (if the bank already has the money it’s harder to get it back).

[saganite]

But what if they pass a law and mandate the rates? Maybe I’m misunderstanding you and you’re saying rates would be higher for everyone else not included in the particular group?

If that’s true and businesses and homeowners not covered had to pay higher interest rates to cover the lost money from the mandated loans the economy would just roll right on off the cliff.

[castlebrew]

150% interest on $0 principal is still 0...

[FreeReign]

I am a Mortgage Banker, if these MORONS acheive this BS, investors in MBS WILL requrie higher interst rates to protect their invesment, the result would be HIGHER MORTGAGE RATES

Naw.

Just send the mess on to Freddie and Fannie. Bury the risk in some security bundle. 10 years from now, the taxpayers will bail it all out again.