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Politics : Sioux Nation

DJT 14.53

-1.8%

Jan 23 9:30 AM EST

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To: cirrus who wrote (160496)	2/12/2009 2:45:26 PM
From: Travis_Bickle	1 Recommendation Read Replies (1) of 362594

The answer to a lot of the questions is "nobody knows." Tanta, who sadly passed away a couple of months ago, from CR's blog was the most knowledgeable person and she said it was a mess calculatedriskblog.com You could learn a lot reading everything she posted but it would take a while. Prepays are pretty easy ... the people who own the stream of interest payments (interest only strips) get hosed, their investment is now worth zero because there are no further payments coming ... the people who own the principal benefit cause they get paid early. Prepays have killed many lenders over the passed couple of decades. Re modifications, Tanta did some long posts on that. First, nobody is really sure who owns these instruments cause most are held in street name, and the owners are worldwide. Each pool of mortgages has a "servicer," which might be Countrywide. The servicer has limited ability to modify the terms of the mortgages, which is spelled out in the indenture through which you buy the securities. The issuer is totally out of the picture unless it also happens to be the servicer. The servicer forecloses if the loan is delinquent, all that is spelled out in the indenture.

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