How does a bank sell a loan “repeatedly to multiple buyers?”
we do realize that banks and institutions were forced at the point of a gun to write bad loans, right? We also understand that they devised a process to package the bad loans with good loans and sell them for a minimal profit in a market controlled by the fed gov, right? In that market, the fed gov made money as well as the banks and that market was controlled by Clintonites like Rahm, Mcauliffe, Gorelick and Barney Frank’s gay lover. People with no experience at all in financial dealing were making decisions on how to best manage and facilitate a trillion dollar shell game and people blame the banks while these people live large on their bonuses. Anyone who questioned it was called racist.
This is nothing but a shakedown.
He he not exactly what happens... a bit biased.
Different _parts_ of a mortgage can be sold to different people.
The rights to “service” a loan [collect mortgage payments and administer ancillary customer services] is valuable. The future interest payments can be purchased. The future principal payments can be purchased.
The value of these is obviously a topic of great disagreement. Entire departments of dozens do nothing but analyze data and current environmental factors that affect such prices - so it really is a casino.
But loans aren’t ‘sold repeatedly to multiple buyers”. i’m sure there have been cases where a mortgage broker tried to sell loans to more than one entity to get paid more than once before absconding to Lithuania or Papa New Guinea... but that’s it.
But different _parts_ of loans are sold individually to different entities.
It is called fraud. My sister had 5 different banks own her mortgage during 3 years time. Wells Fargo was the last and they foreclosed on her. She did not pay her mortgage for 3 years while her paper was sold to all those banks.
The lenders would sell packages of mortgages with the bad ones mixed in. The next bank would resell. Hot potato.
We the taxpayers got burned.
Goldman Sachs execs and others got immensely rich with zero punishment.
How does a bank sell a loan “repeatedly to multiple buyers?”
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You don’t actually sell the loans into the trusts ,, you just give them a spreadsheet with the property and loan information ,, THERE WERE NO TRUE SALES ... if you’re getting close to a deadline and need a few hundred loans to close out an issue you simply cut and paste from another CDO ...