Comments on: How the mortgage mess could spread beyond sub-prime http://blogs.reuters.com/great-debate/2010/10/22/how-the-mortgage-mess-could-spread-beyond-sub-prime/ Fri, 24 May 2013 09:03:55 +0000 hourly 1 http://wordpress.org/?v=3.4.2 By: kenezen http://blogs.reuters.com/great-debate/2010/10/22/how-the-mortgage-mess-could-spread-beyond-sub-prime/comment-page-1/#comment-34624 kenezen Mon, 18 Apr 2011 15:30:23 +0000 http://blogs.reuters.com/great-debate/?p=8481#comment-34624 Great article! The saddest part of this has to be that currently we are returning to the same atoms that went rogue and caused the just past atomic collapse. Let's list a few. The Government will once again take back end risk The loan programs are amazingly similar and will become even worse as competition once again increases. There has been no recognition that Servicing/Master Servicing has not created capabilities that contain the universe of information necessary from origination through Securitization, Derivative formation(Tranching), Credit Default Swap(CDS)coverage and and public Exchange created tracking of CDS. (Exchange is necessary) Finally for now, there is no cost efficiency that would allow only good loans instead of quantities necessary to cover the too large inefficient overheads. Great article! The saddest part of this has to be that currently we are returning to the same atoms that went rogue and caused the just past atomic collapse. Let’s list a few.

The Government will once again take back end risk

The loan programs are amazingly similar and will become even worse as competition once again increases.

There has been no recognition that Servicing/Master Servicing has not created capabilities that contain the universe of information necessary from origination through Securitization, Derivative formation(Tranching), Credit Default Swap(CDS)coverage and and public Exchange created tracking of CDS. (Exchange is necessary)

Finally for now, there is no cost efficiency that would allow only good loans instead of quantities necessary to cover the too large inefficient overheads.

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