This blog contains some simple tips and advice from two regular guys. We're not accountants, financial advisors, or brokers, so follow, ignore, or discuss our ideas as you see fit.

Tuesday, December 4, 2007

Article: Roadbloack to a subprime solution.

Posted By Paul

Hi Everyone,

On CNN Money today was an article about the subprime lending crisis and the search for a way to help people keep their homes.

Here is a link to the article:

Roadblock to a subprime solution.

Since I recently wrote an article about mortgage backed securities, I was especially interested in the part of the article that mentions them:

"A large part of that plan, it's been widely reported, is to broadly rework adjustable rate mortgages (ARMs) for all borrowers who qualify and freeze their interest rates before they jump to unaffordable levels.

But investors in mortgage-backed securities, who buy the loans wholesale from lenders, aren't exactly jumping on board."

So it sounds like investors in mortgage backed securities are VERY interested in the current state of the real estate market.

I'm trying to learn more about MBS investments, so it was interesting to read about them relative to the current market.

I'm still hoping that among our readers that there are some first hand accounts of investing in mortgage backed securitues that people would be willing to share.

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