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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (25536)	12/1/2004 1:56:22 AM
From: John Vosilla	Read Replies (1) \| Respond to of 306849

<On a side note I am positive the reason Greenspan recommended Variable rate loans back in January was not really to screw joe 6pack but to protect FNM from a derrivative meltdown.> And here I was thinking Mr Greenspan was just looking out for the little guy with that comment.

To: mishedlo who wrote (25536)	12/1/2004 3:31:39 AM
From: Amy J	Read Replies (1) \| Respond to of 306849

RE: "FNM is constantly buying treasuries HIGH and selling them LOW." FNM buys the mortgage, why are they buying treasuries? Regards, Amy J

To: mishedlo who wrote (25536)	12/1/2004 5:55:47 AM
From: daffodil	Read Replies (1) \| Respond to of 306849

Thanks, Mish! This is very helpful, since I'm old enough to remember when $100,000 was a "jumbo" loan! I just figured it out: CFC securitizes and acts as a b/d for their own (and others') loans. The Mortgage Banking segment originates, purchases, securitizes and services mortgage loans in the United States. The Capital Markets segment operates as an institutional broker-dealer that primarily specializes in trading and underwriting mortgage-backed securities. So, essentially, they're able to keep the risks they want, and pass along the risks they don't want to keep not only to the government and quasi-government, but to institutional and retail investors directly and indirectly. Brilliant. This explains why: NEW YORK, Nov 29 (Reuters) - Morgan Stanley on Monday raised its rating on Countrywide Financial Corp. (CFC.N: Quote, Profile, Research) to "overweight" from "equal weight." I think I'll keep watching the puts while I continue to try to figure out where they're vulnerable to a credit implosion, though. }=>------->>>>