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To: Freedom Fighter who wrote (192897)	9/19/2002 9:26:21 PM
From: orkrious	Respond to of 436258

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To: Freedom Fighter who wrote (192897)	9/19/2002 9:32:00 PM
From: reaper	Read Replies (3) \| Respond to of 436258

wayne, i THINK that he meant, in 'extend even more loans' is not NEW loans, but extending the old ones (i.e. the old ACF trick of letting customers miss a payment or two and tacking it on to the end of the loan; they call it 'deferrals', i think). by allowing customers to defer payment, they avoid delinquency triggers, but they lose cash flow -- cash that is needed to pay the holders of the securitizations. and yes, delinquency triggers are related to each of the individual trusts. i think you might ask yourself a larger philisophical question. which is 'has there ever been a sub-prime lender, that lends against assets with little residual value, that has been successful'. i would proffer that, excepting Tony Soprano and his compatriots, that the answer is no. Cheers