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Can a piece of paper prevent another mortgage crisis?

This is a discussion on Can a piece of paper prevent another mortgage crisis? within the Mortgage Know-How forums, part of the Mortgage and Loans Forum category; In a release, Lieu said, “HUD’s announcement … is a step in the right direction, but it fails to stop ...


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Mortgage Know-How A mortgage is the transfer of an interest in property (or the equivalent in law - a charge) to a lender as a security for a debt - usually a loan of money. While a mortgage in itself is not a debt, it is the lender's security for a debt. It is a transfer of an interest in land (or the equivalent) from the owner to the mortgage lender, on the condition that this interest will be returned to the owner when the terms of the mortgage have been satisfied or performed. In other words, the mortgage is a security for the loan that the lender makes to the borrower.

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Old 11-15-2008, 10:07 AM
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Default Can a piece of paper prevent another mortgage crisis?

In a release, Lieu said, “HUD’s announcement … is a step in the right direction, but it fails to stop the perverse incentives – such as abuse of yield spread premiums – that continue to exist in today’s bmortgage/b market to reward risky b.../b

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