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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Who eats the defunct loans... Posted by Ward-CA on October 08, 2006 at 6:39 PM In Reply to: Banks and Tier 1 Capital posted by K2163 on October 07, 2006 at 8:36 PM Supposedly there's going to be a difference this tme around. Seems that a very large proportion of all lenders don't hold their loan originations anymore. It's alleged that they sell almost all of their loans to Wall Street types that create bond-like securities that are backed by pools of securitized loans that total millions of dollars. I guess the originating lenders get the original upfront garbage fees and the ongoing, monthly servicing fees from the loans they've created. If this is true, what risk do the lenders face other than losing the continuing sevicing fees on defunct loans? ------------Ward------------- : I was talking with my buddy last night. He used to run Sec Pac's REO division before they were bought out. : He said 1/1/07 all banks will have to list their "tier 1" capital. They do this once a year. : This is the capital that they have to keep to stay in business per the Treasury Dept. He said REO properties dig into this really bad and we should start to see some real surprises in the industry. He said it may prevent the banks from taking more properties back. Might even start to see some bank closures. : Does anyone know much about this? Follow Ups: Re: Who eats the defunct loans... k2163 12:44 AM, 10/10/06 (0) Post a Followup: Name : E-Mail : Subject : Comments: : Supposedly there's going to be a difference this tme around. Seems that a very large proportion of all lenders don't hold their loan originations anymore. : It's alleged that they sell almost all of their loans to Wall Street types that create bond-like securities that are backed by pools of securitized loans that total millions of dollars. : I guess the originating lenders get the original upfront garbage fees and the ongoing, monthly servicing fees from the loans they've created. : If this is true, what risk do the lenders face other than losing the continuing sevicing fees on defunct loans? : : ------------Ward------------- : : : I was talking with my buddy last night. He used to run Sec Pac's REO division before they were bought out. : : He said 1/1/07 all banks will have to list their "tier 1" capital. They do this once a year. : : This is the capital that they have to keep to stay in business per the Treasury Dept. He said REO properties dig into this really bad and we should start to see some real surprises in the industry. He said it may prevent the banks from taking more properties back. Might even start to see some bank closures. : : Does anyone know much about this? Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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