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Goodmorning
must be a joke!
Great ..now ..more please.
Damn. Normally the "First!" posts are trash, but is the one time it would have been worthwhile.
Will the DOW hold above 12k?
Congrats, Tanta! Thanks for all the shared wisdom over the years.
only 1000 executive and 999,300 buyers to go...
Mortgage fraud investigation nets 700 - CNN Money.com
CNN Money.com reports more than 700 people have been arrested over mortgage fraud as part of an investigation by the FBI and Justice Department that has been going on since March 1, a govt official told CNN Thursday. Losses in the fraud cases total about $1 bln, the official said.
Not good. Not good at all. Would like your take, Tanta, on what happens next. Do other MI companies buy Triad's outstanding policies? What about the policies on loans that are delinquent? Does this have the potential to be messy?
I'm glad this hasn't happened to one of the big MIs. Where's some wood to knock on?
Dow 11983. and no helicpters yet.
Now all we need is for Tanta & CR to acknowledge we're in a recession.
It's only one cockroach.
Do other MI companies buy Triad's outstanding policies? What about the policies on loans that are delinquent? Does this have the potential to be messy?
Well, it won't be pretty, but "run-off" means it will continue to collect premiums/service/pay claims on its existing book of business; it simply won't write new business. Over time the existing book will naturally go away as loans age/pay off/policies are cancelled (which generally happens when they get to 78-80% LTV.
They might sell or reinsure some of the book; a lot will depend on what their regulators make them do.
What percentage of the residential Mortgage Insuarance market did Triad represent?
I guess we now wait to find out who was at the other end of their "coverage"... Expect more shell hedge funds to get set up such as what Lehman and GS are doing to off-load crap onto.
Does this mean that we are all " Mortgage Insurers Now?"
Taos writes:
Does this mean that we are all " Mortgage Insurers Now?"
Taos | 06.19.08 - 10:17 am | #
Um, as a taxpayer, that would be a big "yes".
Incoming!
Bloomberg.com
What percentage of the residential Mortgage Insuarance market did Triad represent?
Less than 10%. For any further precision you'd have to type your question into Google.
I guess we now wait to find out who was at the other end of their "coverage"...
Uh, what?
Do let's keep clear on the distinction between a mortgage insurer and a monoline bond insurer. They are different businesses.
Mortgage insurers pay on default of individual mortgage loans. They collect premiums from servicers, which come out of borrower payments.
AMBAC and MBIA are bond insurers, not mortgage insurers.
Mortgage insurers pay on default of individual mortgage loans. They collect premiums from servicers, which come out of borrower payments.
That causes a question in my mind as to what segment of the mortgage market Triad was focused on. If they were insuring all varieties of mortgages, then this is a systemic problem boiling over. If they were focusing on subprime, then its no surprise. Any thoughts ?
That causes a question in my mind as to what segment of the mortgage market Triad was focused on.
I do know that their biggest account in 2006-2007 was American Home Mortgage, which of course imploded last year. As far as I know they were pretty into Alt-A.
All of the MIs have some subprime exposure, but none of them as far as I know has a whole lot of it. The subprime lenders mostly did the "piggybacks." They all had more Alt-A than they needed to.
Whenever I see a company named "Triad" I wonder if it is based in Hong Kong or Taiwan...
Tom Stone writes:
Whenever I see a company named "Triad" I wonder if it is based in Hong Kong or Taiwan...
I thought they sounded suspicious.
The handwriting was on the wall for this one. I guess it's official now. I had friends at other lenders telling me that they were cut off months ago. What's interesting is a story I heard about a year ago in regards to loans they insured for AHM. I heard that they had refused to pay on some claims due to fraud (insufficient due dilligence in AHMs underwriting). I was expecting serious repurcussions from that. Everyone of the MI insures could kick back some liabilities.
Less than 10%. For any further precision you'd have to type your question into Google.
Triad had a ~6.5% market share in 2007 according to inside mbs&abs.
bacon, why don't you just ask Guy Cecala for a rochambeau?
Tom Stone writes:
Whenever I see a company named "Triad" I wonder if it is based in Hong Kong or Taiwan...
Winston-Salem/Greensboro/High Point NC is known as the Triad area (Piedmont Triad) - Wikipedia, the free encyclopedia. Since the press release came from Winston-Salem, I think that rules out Asian crime syndicates as an underlying cause here.
also, this thingy has details on triad's risk exposures:
http://library.corporate-ir.net/library/10/106/106599/items/293379/SupplementalInformationFirstQuarter2008.pdf
also, this thingy has details on triad's risk exposures:
Total risk in force:
Fixed Rate: 72.3%
Amort ARMs 8.8%
Interest Only 6.0%
PNAM 12.8%
Still not clear on what the PNAMs are (footnote says 'Potential Negative Amortization Mortgage')
If one may make requests, Tanta, could you explain what Martin Feldstein was on about in Washington POST Op-ed about the government putting a floor under house prices? It was similar to already existing proposlas where the USG takes ona mortgage for about 20% of current appraised value, but I could not understand his reasoning on why people would no longer have an incentive to default, nor his suggestion that this would not increase USG borrowing.
Page 17.. look at the default rates climbing over a 24 month period...
Fla 1.2 % to 9.8%
Cali 0.6% to 8.6%
odd that I don't see Nevada in that list.
Still not clear on what the PNAMs are
option arms.
OT:
a reminder to vote in the sweet 16.
It's not a real credit crisis until...
some bank gets itself trapped in a death spiral financing.....
The article requested is no longer available.
Fifth Third? What a name...
How could I ever trust a bank that can't even count?
Like calling your vegetable business "Farmer E. Coli" or "Salmonella Cooperative".
Never did get that - Fifth Third - or as the homeys say "Fit Turd".