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The Real Scandal-How Feds Invited the Mortgage Mess
New York Post ^ | February 5, 2008 | STAN LIEBOWITZ

Posted on 02/05/2008 5:42:47 AM PST by OESY

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To: pnh102

The answer to that question is PMI ( private mortgage insurance) It covers the lender’s loss for any part of loan money over 80% value of the house. So their backup plan was to accept a 20% decline in values and still make their money. The media tanked values more than that.


41 posted on 09/15/2008 8:12:18 AM PDT by ritewingwarrior (Win the war and not the battle.)
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To: OESY; ExTexasRedhead; gonzo

Thanks, and bump for a later read ............... FRegards


42 posted on 09/17/2008 9:02:53 AM PDT by gonzo ("Shall Not Be Infringed" - use it now! While you still can ... FRegards)
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