Banks--- Betting on the recovery Message Board

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Non-Tech : Banks--- Betting on the recovery

WFC 84.71

-1.8%

Nov 13 3:59 PM EST

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To: Petz who wrote (500)	5/11/2009 8:50:59 PM
From: Hawkmoon	of 1428

Hawkmoon, were these mortgage insurance policies for homes, or commercial real estate? Believe it primarily dealt with RMBS stuff.. But the premise is that when the insurers "tested" the origination documentation on the loans, they discovered major discrepancies in between 80-90% of them. That makes it VERY POSSIBLE for them to refuse paying out claims if they can show fraud on the part of the originators. Again.. this is one of the reasons I've been holding out hope for the monolines. If they can re-negotiate the terms of this insurance (collect more premiums), or commute the policies altogether, it will drastically reduce their liabilities and plant them back where they belong; namely only the banks that originated them. Hawk

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