is loan modification.
This is from the Barron's now-famous article of FRE/FNM. Do you think someone with 100% option ARM book like FED and DSL will think this is beneath them? :D
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"The companies also appear to have boosted their capital ratios by sharply curtailing their repurchase of soured mortgages out of the securitizations they've guaranteed. In the fourth quarter of last year, for instance, Freddie Mac took a loss of $736 million on loans repurchased. In this year's first quarter that figure dropped to $51 million -- a stunning decline in view of the continued deterioration of the housing and mortgage markets. Instead, the company made the interest payments to bring the mortgages current -- a much smaller outlay, but a tactic that only pushes an inevitable loss forward into future quarters. In Fannie's case, by postponing the buyback of bad loans the company avoided more than $1 billion in second-quarter charge-offs and a hit to its net worth."
The right enemy
12 years ago
4 comments:
If SLM is in bad shape, why are DV, ESI and APOL doing so well?
fair guess without checking those:
they didn't borrow as much.
DeVry, ITT and Apollo (Univ. of Phoenix) are private colleges/universities and are dependent on student loans. SLM and FMD are in the toilet and these are flying high. Something doesn't add up here.
Every unemployed realtor is joining DV or APOL to get yet another skill to make fast money (Foreclosures 101 or Cleaning Empty Houses 403).
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