Hmmm….
I find the idea of securitising mortgage loans pretty interesting, i.e. moving it into tranches and minimizing risk for all parties. Hehe.. but it does seem to have another unique problem….
By breaking lumping together many mortgages and then breaking them up into tranches to be sold to many disparate investors… there is no longer the concept of a whole mortgage belong to one unique lender….
Without the whole mortgage, sellers will not be able to restructure the loans for a win-win solutions. Interesting You-tube video.
httpv://www.youtube.com/watch?v=fPGqwtQL94I&feature=user