Wednesday, October 01, 2008

interesting reading on Housing Wire ..the inside view

“If the federal government wants to get into the asset management business, we all may as well write the check for taxpayer losses right now,” said another managing director at a distressed-loan purchasing specialist. “This business is much harder than it looks, and the issue isn’t as simple as holding to maturity or a desire to be aggressive on loan modification.”

Some sources, as a result, expected that the Treasury proposal could end up being a boon for distressed mortgages. “They’ll find out they need to churn and burn whatever they buy,” one source suggested. “That could mean the market for whole loans will really start moving, with the pricing hurdles removed.”


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