[lbo-talk] Mortgages

Sandy Harris sandyinchina at gmail.com
Sun Feb 22 16:58:29 PST 2009


On Mon, Feb 23, 2009 at 7:57 AM, Jordan Hayes <jmhayes at j-o-r-d-a-n.com> wrote:
>> So when we refinance, the USG is paying off these original
>> mortgages off at full face value?
>
> We call that 'payoff value' but, yes.

Why on Earth are they doing that? It seems to me they should be refusing to touch the "securities", just buying mortgages cheap.

In one interview, one of Paulson's minions was asked what they'd do about stuff worth maybe 30 cents on the open market, but carried on a major bank's books at 60. He said they'd likely offer 55. What? The question should be whether to go as high as 28 or to look for a better price.

-- Sandy Harris, Quanzhou, Fujian, China



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