Posts tagged as:

option arm

Option ARM Defaults Expected to Surge 25%

by Moe Bedard

Twelve-month default rate expectations on certain U.S. RMBS collateral have doubled since the previous quarterly survey, with U.S. 2007 Alt-A pay option ARM RMBS collateral default rate predictions rising to 25% from 12% polled in Q3.

For the same vintage, U.S. prime fixed-rate collateral default forecasts rose to 5.75% from 4.00%; U.S. prime adjustable-rate collateral default [...]

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They did not understand the product themselves so no way could they educate the borrower

by Moe Bedard

 By DJ

Having been in the wholesale end of the business with Option Arms as one of my products, 99% of the time the loan officer would ask for “max prepay, max rebate”. (mortgage lingo = I want to make the most money I can on this loan and how much can I screw the borrower [...]

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Exclusive interview transcript with CNBC’s Maria Bartiromo, Countrywide CEO Angelo Mozilo

by Moe Bedard

The following is the unofficial transcript of a CNBC exclusive interview with Countrywide CEO Angelo Mozilo on CNBC’s “The Call”  from early 2007. All references must be sourced to CNBC.
In an exclusive interview with CNBC’s Maria Bartiromo, Countrywide CEO Angelo Mozilo discusses Bank of America’s $2 billion investment in Countrywide, problems in the mortgage [...]

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