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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Ramsey Su who wrote (45448)	11/14/2005 12:45:22 PM
From: loantech	Read Replies (1) \| Respond to of 110194

Ramsey, We act as a broker instead of a mortgage banker on these sub prime deals. They are sold immediately so all contact with the client is from the new lender. In response to your questions I am not sure if the borrowers really think it through. They think rates will be lower or their credit problems cured in 24 months would be my guess. The rate on the 28 would usually have a 6 point cap from the start rate and can go up 1 % every 6 months after the initial reset. Toxic if you ask me. Renting is better sometimes. tom