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

To: SG who wrote (101862)	3/3/2009 1:21:05 PM
From: Broken_Clock	Respond to of 110194

reverse mortgages... I wonder if their guarantee is as solid as cdo's....

To: SG who wrote (101862)	3/3/2009 1:38:26 PM
From: Hawkmoon	Read Replies (2) \| Respond to of 110194

Some shysters but feds regulate. Yeah.. no comfort there.. they regulated Freddie and Fannie too.. ;0) Reverse mortgages sound good for the banks when home prices are appreciating because the odds are that the collateral will be worth more than the home when the owner dies and the title passes to the bank to be resold.. But when prices are depreciating it sounds like a lousy deal for the banks and a great one for the home owner. But down the line the banks own the majority of the homes at values that might be less than today. Hawk