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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (29467)	5/5/2005 11:01:04 PM
From: patron_anejo_por_favor	Respond to of 116555

The ultimate weak spot in the securitization/structured finance/credit bubble is that everyone is so busy passing the risk hot potato that no one really questions the underlying principal risk. Which is why the "low man on the totem pole", the hapless appraisers are all of a sudden thrust into the ethical and legal dilemmas they now find themselves in. Why shouldn't the LENDERS be clamoring for squeaky clean, independant appraisals at all times, enforcing it by regulatory or legal codes if needed? Because they won't be on the hook by and large if the appraisal is off and the loan goes south! The loan will be long gone, off to some Asian financial institution or Bermudan hedge fund asset statement. So a 50K/yr appraiser gets put on the hook and pressured from all sides because a 2 million/year mortagage lender CEO shirked responsibility. UFB, but it's the way of the world. The shite they're gonna find when the home lending rock gets turned over will make the scandals seen in the internet bubble look like kids passing around baseball cards.......<NFG>