Home > finance, news, rant > Three strikes against the mortgage industry

Three strikes against the mortgage industry

July 31, 2011

There’s a great example here of mortgage lenders lying through their teeth with statistics. Felix Salmon uncovers a ridiculous attempt to make loans look safe by cutting up the pile of mortgages in a tricky way- sound familiar at all?

And there’s a great article here about why they are lying. Namely, there is proposed legislation that would require the banks to keep 5% of the packaged mortgages on their books.

And finally here’s a great description of why they should know better. A breakdown of what banks are currently doing to avoid marking down their mortgage book.

Categories: finance, news, rant
  1. August 11, 2011 at 4:26 pm

    The author did not take into consideration that underwriting for “qualified mortgages” during that time period became extremely loose. To be accurate, you have to compare default rates to the previous 20 years or so.

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