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