Posted on 12/07/2011 1:41:21 PM PST by sheikdetailfeather
It’s an interesting call, but not entirely accurate. Unfortunately this sort of anecdotal material seems to be what Rush uses as ‘research’.
Laurie appears to believe that securitizing mortgages was something that Fannie & Freddie came up with between 1999 and 2003. In fact they had been securitizing mortgages since 1971 in the case of Freddie and 1980 in the case of Fannie.
And more significantly Laurie seems to be conflating the business model of investment banks during the bubble with that of Fannie & Freddie. Investment banks were extending warehouse lines of credit to mortgage brokers (she refers to them as wholesale lines of credit), and when that credit line was filled the IBs would take the mortgages and refill the credit line.
That part she has right. But she thinks that Fannie & Freddie then bought those loans and packaged them and sold them to the likes of Lehman Brothers. In fact F&F weren’t part of this loop at all.
The investment banks (which included Lehman Brothers) that extended the warehouses line of credit packaged and sold off the loans themselves, they had no need for Fannie & Freddie and in fact were rivals to F&F. During the bubble the private market mortgage securitizers cut deeply into Fannie and Freddie’s business, taking market share away from them.
So while Laurie does provide some insight into the world of mortgage brokers you have to be careful about taking her version at face value. I don’t think that she is trying to mislead anyone, I suspect that she is just a bit unclear about some aspects of the business that she didn’t handle herself.
BS, I had nothing to do with this. Didn’t know it was going on, and If you were in the business and saw it go down then YOU are to blame, don’t try passing it around.
Everybody with those characteristics is to blame.
I was already in the business when the Community Reinvestment Act was proposed, became law and was implemented.
Nobody in the industry at the time liked it, because we all knew where it would lead.
Sure enough........here we are.
If you want to match wits with me on this issue, please feel free.
So your a mortgage broker, knew the deal, for who knows how many years, but every body was doing it, and made tons of cash, and now you have a conscience. But your trying to find away around it.
Sounds like a pornographer who shot a 16 yr old and feels bad.
You, and your peeps were, and still are the problem, You and your people happily pocketed loads of cash, blame others for your... because others involved in their careers were not standing over you making sure you were trying to do the right thing.
Your thinking is working
I was a mortgage banker, not a mortgage broker. There is a difference. I nearly always declined deals brought in by mortgage brokers.
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