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

To: russwinter who wrote (47272)	12/14/2005 9:32:10 AM
From: orkrious	Read Replies (1) \| Respond to of 110194

Now I see this friggin 40 year mortgage is being promoted, but if the rate is 25 bp higher than a 30, might not lower the monthly that much?< $300k 30 year at 6% - pmt = $1,799 $300k 40 year at 6.25% - pmt = $1,703

To: russwinter who wrote (47272)	12/14/2005 9:45:24 AM
From: Ramsey Su	Read Replies (2) \| Respond to of 110194

Message 21970078 I just read your post again. It is really informative. We identified a number of events leading up to GREBB day and this is one of them. Even though FMF is not a big enough player, they could be the prelude of things to come. Basically, they are defaulting on interest payment on some of the riskiest tranches. has decided to exercise the Company's contractual right to defer the payment of interest on the subordinated note component of its income participating securities (IPSs) for the month of November, which would otherwise be payable on December 15 What are all these "mortgage loan repurchase requests"? I guess these are the loans that are not performing as "guaranteed" at sale and FMF are contracturally obligated to take them back? They are raising interest for the loans in the pipeline by 100 basis points, that is ONE PERCENT. How many loans are they going to be knocking out with that increase? On the other hand, if that is how much they need to increase their WAC by in order to sell their loans, how much of a loss do they need to rid themselves of the garbage already on the books? Introduction of the 40 yr mortgage is telling us that the market is very leery of IO loans. They need to be able to say "FULLY AMORTIZED" instead of IO regardless of how little difference it really makes.