Private equity shops and institutional players are buying and packaging (securitizing) nonperforming mortgages from the Federal Housing Administration (FHA) and selling those mortgages to mutual funds and themselves.
Indeed, some of the numbers are downright scary just now, both in nominal value and in terms of red-light factors blinking on the horizon.
The rats are fleeing their listing ships…
July retail sales data released today (Wednesday) was flat, suggesting the U.S. economy’s third quarter will be weaker than expected.
If there’s one thing that concerns everyone it’s a threat to their capital.
BAC is in tentative talks with the U.S. Department of Justice (aka the Obama Mafioso Collection Agency) to pay between $16 billion to $17 billion for its part in selling shoddy mortgages, or originating them, or packaging them, or being a TBTF bank that wasn’t allowed to fail but now has to pay the piper.