FHA&Banks asked:
FHA originated many loans, however, so did other institutions. And other MBS were issued. What was the dollar value of the FHA morgages vs the credit debt swaps and other MBS that defaulted?
FHA originated many loans, however, so did other institutions. And other MBS were issued. What was the dollar value of the FHA morgages vs the credit debt swaps and other MBS that defaulted?
#1 by Kevin R - January 4th, 2010 at 19:50
I don’t know. A truly precise number will never be known except through HUD. I wouldn’t believe it either, personally. So much creative accounting has run rampant, coupled with overt deceit, mix in derivative losses, and you get an impossibly off target picture of what really happened.
If I had to guess, I’d say somewhere around 15% mortgage defaults. The swaps, by risk exposure, 30-40%.
I hope the guess seems low to you. The idiocy of the $700B banking bailout should now be readily apparent. That’s $2,300 for every person in America. I submit, if each of us were given the money there’d be a pretty quick end to the recession. We might’ve even bought cars.