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The other day we learned that the HAMP's stated default rates are

So what about the private mortgage business?

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got a tip from a mortgage broker, which Middleton sees as more the rule than the exception. Basically, he says, banks are not reporting to credit agencies the massive, years-long delinquencies of borrowers because to do so is to admit that those loans are toast, and to do that is to admit that one needs more capital on hand to mitigate those losses, and to do that means telling the stock market that you're still in trouble, and to do that means a falling stock price (and bonus), and so fuck it. Everything's good. Really. I won't draw any conclusions based on this one case. But we have seen

'round here lately. Anyone out there—I'm lookin' at you, honest mortgage broker(s?)—have any insight?

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