To: Deathmonger
Freezing ARM adjustments represents a mass invalidation of private party contracts and further wipe out investors. Unless the agreement is voluntary.
It also would likely cause no one to ever buy a mortgage-backed security again (at least adjustable ones).
Investors are already buying the newer securities, even ones that include subprime.
54 posted on
12/06/2007 8:54:54 AM PST by
Moonman62
(The issue of whether cheap labor makes America great should have been settled by the Civil War.)
To: Moonman62
Unless the agreement is voluntary.
I'm sorry, do you have a mortgage that says "all payments are voluntary, if you don't feel like paying, don't"?
Investors are already buying the newer securities, even ones that include subprime.
The only newer securities being bought right now are at losses to the originators. Check the ABX indexes. This is why companies like Countrywide have virtually shut down non-agency originations--they lose money on each one. The most recent originations have been performing the worst.
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