Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: CalculatedRisk who wrote (69477)	12/27/2006 3:26:41 PM
From: Lizzie Tudor	Read Replies (1) \| Respond to of 306849

Calculated... bonehead question here I am not familiar with the mortgage finance industry. What is the business model of these fly by night companies? Just consolidating loans and selling them, and collecting investments from various sources to invest in mortgage backed securities? The consolidating and selling part of the business is just your average middleman and these services are provided by everybody these days like e-trade for example. As for the mortgage backed securities investment business, that is not a separate business either, its just another arm of a bank or brokerage house. What IS the value add of these firms? Maybe there isn't one which is why they are going away.