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Mike,
You might want to talk to your friends at Countrywide and IndyMac. As I am sure you know Countrywide released a statement to the press late on Thursday stating they still have $50B in liquidity and the chairman of the board for Indymac released a statement the day before.
With that said, what is curious is that Countrywide funds approximately $40B per month and at that rate they will only be doing business for approximately 5 to 6 weeks.
Also, here at WaMu, our option arm performance has a less than 5% default rate which is the best among all products which WaMu portfolios. If a broker decides to sell an option arm to a borrower they better make sure the borrower knows exactly what they are getting, which I am sure you are aware.
Quote from an un-named insider whom I have been doing business with for the last 12 years.” We are in a midst of a mortgage liquidity crisis. This is for ALL mortgage products, not just subprime or alt-a. We are seeing the credit markets now panic, on all mortgage debt, and loans are not moving through the financial systems of the US or world economy.”
Oh boy isn’t all this fun!!! Time to hit the track this weekend. Hope you are out this weekend at IMI. I will be out Saturday and I am going to race on Sunday, as practice for the CSC event.
Tom
Tom,
The only constant is change!
“The sky is falling” is reaction from the Lemmings and things will settle down all in good time. Over the course of twenty years I’ve seen a lot. Just not as serious as it has gotten practically overnight.So, did your engine “tighten up” like mine did Saturday? I was really looking forward to running with y’all sunday but alas it wasn’t to be.
Brad, the track is smooth and fast in what LITTLE time i had on it. The money you spent was well noted from this karter. I can’t wait till the engine is fixed and have the chance to race again.
:cheers:
What a great day Sunday was!!! Never a thought of the market.
I made a rookie mistake. My plug backed out two complete turns but the kart ran good until it came to a silent role on the back straight.
Missed you out there. I hope your Motori gets back into shape. My Rotax goes into Shockwave tomorrow and will be ready for the race CSC race weekend at IMI.
:cheers: here is to the market getting back to normal.
Tom,
Right now there are investors/lenders sitting with bundled loans ranging from 10 million to 1 billion and they can’t sell them for the price they thought they could sell them for. Pricing models based on 85 basis points wasn’t that good when they should have taken it, they still thought they’d get the 105 basis points. Wall Street is sitting there wanting to know “how low will they go” since loans they bought at 80 “bips” is now worth 60 “bips”. I gave up correspondence for this reason alone not wanting to be stuck with product that is now worthless.
Just like a snake eating a pig it will take a little time to digest this all and there’s a flight to good quality loans once again. Jumbo lending will also get better since the spread is right now is 7/8 over conforming vs. the usual .25%. The adjustables on jumbos will be a safe haven for now. And things will calm down.
(I just realized this isn’t a mortgage website, sorry!) 8)
Sorry to hear about your engine. I shut mine down in time so the damage shouldn’t be too bad. I really was looking forward to having you behind me… 8)
See you in a few weeks. I’ll be volunteering for the Grands so better be nice to me.
:cheers:
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