Economy
Related: About this forumBanks giving up mortgage securitization...a victory for regulators, it seems.
I found this am news that BOA, Citibank, and mortgage servicers Green Tree and Nationstar are "exiting" the wholesale-mortgage business, as are a bunch of other companies.
A wholesale-mortgage business sells home loans in large quantities through outside brokers.
The brokers turn them into securities, bonds and sell them to investors.
And it turned out those bonds included a LOT of worthless sub prime loans.
The trend of exiting the wholesale-mortgage business is being driven by lack of consumer demand, banks' decision to tighten lending standards and recent regulatory changes....
snip
"Securitizations are all but dead right now, and this business has been totally tainted by the residential mortgage crisis of late," Plath said.
http://www.journalnow.com/business/article_3e55a67e-03f6-583a-87f3-281ac4c38cd7.html
if you search for this phrase...exits wholesale mortgage business
a long list of banks and other firms will come up.
Maybe regulation is working, eh?
Squinch
(51,026 posts)ms.smiler
(551 posts)The banksters ran the scam, defrauded investors and homeowners out of trillions of dollars, clouded the property Titles to tens of millions of properties, and now will distance themselves from accountability. This is the con artist packing his bag and leaving town.
I know better now than to ever sign another MERS mortgage contract or ever involve myself and my property in another securitized mortgage. And in 2006, I knew better than sophisticated investors who were swayed by bogus AAA investment ratings.
By now, we all know they are crooks and the system is rigged, not in our favor. Im a business owner and I cant imagine surviving with such a reputation. We all know the banksters can violate any law they please and the worst that will happen to them is a fine, only a small percentage of what they stole. Since these companies appear to have a government issued license to steal, who are the idiots that would continue to do business with these companies?
Demeter
(85,373 posts)and many more to come. Almost unlimited liability for the banksters.....not what you'd call a good business plan.
Bush let them get away with it, but NY isn't.
StoneCarver
(249 posts)I would like to thank you, guiderglider, crewleader, etc. for saving me 100's of thousands of dollars avoiding the last crash-before 08. I've never had the chance to thank you. I try and listen to the signal through the noise. You are the signal. The Chinese have a saying "he who knows -does not say, and he who says -does not know". Just listen to the talking heads tomorrow on Sunday -they don't have a clue. The people who know what will happen on Wall Street at Goldman Sachs -aren't saying. It's only the idiots on TV talking. I try and listen for the whisper of people -like you. Sorry I don't post a lot. I just don't have much to say -that hasn't already been said (not to sound like Clarence Thomas! What a disappointment!). But I enjoy reading.
Take care,
Stonecarver
Crewleader
(17,005 posts)I am happy I saw your post. That's what I wanted to do, help and inform so no one got caught in that housing bubble.
And you just made my night. Thank You for the shout out StoneCarver, and you take care.