Mortgage-Backed Securities I

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Part I of the introduction to mortgage-backed securities

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    There Are 25 Responses So Far. »

    1. Comment by tcf909 on 25 November 2010:

      What did you use for your screen capture? which software? thanks!

    2. Comment by auctionmusic on 25 November 2010:

      Bank mortgages should be outlawed…illegal.
      A mortgage should be setup such that the monthly interest is 1/2 the payment, and the other half is the principle. If you can’t afford it, then no loan….no house…no soaring house prices…people can now afford homes, and they can pay them off much sooner…The current structure of banking causes prices to soar, and you wind up trapped in a 30 year debt…the current structure is a complete and total ripoff..its criminal!….

    3. Comment by ifginc on 25 November 2010:

      It is always best to own a home than spending every month on rent. Get easy and flexible home mortgage from the fast and reliable services of Integrated financial Group.

    4. Comment by jmm5149 on 25 November 2010:

      “Another person, you. And you have a… you have a… a hat.”

    5. Comment by smokenfly514 on 25 November 2010:

      Why would the investment bank buy the mortgages for $1B when many people will default and won’t be able to make their payments? And why does he say in the next video that investors would be willing to buy it for $1.1B?? Even if all debtors come up with the money to pay, you will make 0 profit. Am I just getting something wrong

    6. Comment by Echelon2600 on 25 November 2010:

      “When, through the process of law, the common people have lost their homes, they will be more tractable and easily governed through the influence of the strong arm of the government applied to a central power of imperial wealth under the control of the leading financiers.”

      -Excerpt from the Banker’s Manifesto of 1892

    7. Comment by Echelon2600 on 25 November 2010:

      …and when you create that much money out of thin air by fraud in factum and fraud in inducement, via contracts that are void ab initio, it’s only a matter of time before it all collapses.

    8. Comment by Echelon2600 on 25 November 2010:

      …not to mention the fact that they sell the worthless copies and pass them around like a whiskey bottle at a frat party. Most homes are paid off in full 10x over before you ever set foot in the door. And who created all the money and value? You did – when you signed the note.

    9. Comment by Echelon2600 on 25 November 2010:

      A copy of the note is worthless because it has no wet-ink signature of a living soul upon it to give it value, but the banks still use them to foreclose. It’s fraud to the core, and I’m not guessing at the facts here. I just proved it in district court.

    10. Comment by Echelon2600 on 25 November 2010:

      Therefore, they loaned you no money, but fraudulently purported that they did. YOU created the loan and got no contractual consideration, and they took no risk. Also, they have 20-30 mortgage default policies, so when you default they get paid off 20-30x what your home is worth, hence the system intentionally designed to fail.

    11. Comment by Echelon2600 on 25 November 2010:

      Unless I happened to miss it, there’s a critically important piece of mortgage-backed securities that you missed – the fraudulent piece that caused the global financial crisis and bank bailouts. When you sogn a promissory note, your signature turned a piece of paper into a valuable instrument. The bank takes that instrument and enteres it as a deposit on its books.

    12. Comment by slate84 on 25 November 2010:

      or you could go to mortgage-sweeps com

    13. Comment by ArizonaMortgageMan on 25 November 2010:

      That’s a nice job of explaining MBS. I also like the way you made the presentation.

    14. Comment by whitefly1 on 25 November 2010:

      Your example is wrong.

    15. Comment by felipeossa on 25 November 2010:

      I like teenage-backed securities more than mortgage backed ones. Check out “Genius Trust.”

    16. Comment by TheRenaissanceYngMan on 25 November 2010:

      fannie mae and freddie mac are no longer listed on the nyse

    17. Comment by TheRenaissanceYngMan on 25 November 2010:

      fannie mae and freddie mac are no longer listed on the nyse

    18. Comment by thegoonist on 25 November 2010:

      @yowmer WTH?! so with most of these housing loans the total sum you end up paying is like what….TWICE the principal? (100k X 10 + 1M = 2M?)

    19. Comment by thegoonist on 25 November 2010:

      anyone know why we cant just pay the developer of the property directly (in installments)? why go to the middleman (the bank), obtain a loan, pay the developer, then pay the bank the interest?

    20. Comment by financialservices123 on 26 November 2010:

      Awesome video – you can see more of this at imageron (dot) com

    21. Comment by medoazouz on 26 November 2010:

      I think why the mortgagor bank doesn’t do the whole process rather than pass it to the investment bank is because it wants to make the mortgage under a separate entity that has its own credit rating, so the rating will be higher than the mortgagor rating itself. Am I right?

      thanks

    22. Comment by maskware on 26 November 2010:

      there is a mistake in your presentation, $1M at 10% means you have to pay $1.1k. If you make a credit on 10 years it means each year you have to pay 110.000$

    23. Comment by netbasis on 26 November 2010:

      NetBasis and cost basis reporting on Money For Breakfast…new tax legislation in 2011 – you will all be accountable for accurate cost basis reporting

    24. Comment by gabriellamariee on 26 November 2010:

      YOU ARE THE BEST !

    25. Comment by yowmer on 26 November 2010:

      @speculatorMan not really. What Sal is saying is that when you take out an interest only mortgage you don’t pay any of the capital back until the end of term (which in this case is 10 years) and so every year you pay back the interest on the $1m that you borrow which is $100k. This means you pay back $100k every year for the 10 years but then at the end of the term you still need to pay the amount you originally borrowed so the payment in year 10 is $1m + $100k. Hope this helps.

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