Bill Coppedge: Mortgage NewsClips – Mon. Dec. 10, 2007

Required reading:

Totally Cool - Save this - How A CDO works - interactive cartoon - Portfolio.com

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worth reading - more on sand pile game, avalanches, and market instability - Black Swans and Endogenous Uncertainty - John Mauldin’s Weekly E-Letter

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from a true insider - Straight Talk on the Mortgage Mess from an Insider - Herb Greenburg’s MarketBlog

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excellent summary in detail of how bailout works - Framework for streamlined refinancing - globaleconomicanalysis

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good chart - Why Home Prices Are Important To the U.S. Economy - by Tim Iacono themessthatgreenspanmade.blogspot.com/

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More on the Bailout: Tripping on the Trigger - this is excellent - has details of Treasury plan and its effects on existing securitizations - by Paul Jackson - housingwire

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Great article and great site - thanks Ira Artman - The world’s new financial power brokers - Four rising players will continue to grow in wealth and importance, even if interest rates rise and oil prices drop. - Diana Farrell and Susan Lund - Mckinsey free reg. and lots more - McKinsey

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MILKEN INSTITUTE PAPERS:

Milken Institute senior fellows James Barth and Peter Passell have an op-ed in Friday’s Wall Street Journal (subscription required) that looks at mortgage data from 1999 – 2007 to conclude that there is no cut-and-dried distinction between prime and subprime, good and bad mortgage products or risky and not-risky borrowers. The authors warn regulators and policy makers that limiting the terms of credit will limit its availability.

More analysis of the subprime market is available in a three-part series of papers, available online:

1. Despite Foreclosures, Subprime Lending Increases Homeownership

2. Surprise: Subprime Mortgage Products Are Not the Problem!

3. Mortgage Market Turmoil: The Role of Interest-Rate Resets

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Tumble, Land Bust, Advice to Builders, Greenspan, Price Tag, Moody’s and Citi SIVs, The Real Problem, E*Trade, Wells Fargo and Downey

Paper download: Single Family Home Prices Tumble for First Time since 1994 - using Global Insight’s extensive proprietary databases on the housing market, including data and forecasts for home prices, home sales, housing stock, and household income, with methodology developed by the economics department of National City Corporation, examines current and expected housing prices in the 330 largest U.S. metropolitan areas. - globalinsight

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The Housing Bust Is Really A Land Bust - BusinessWeek

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Advice to builders - Develop Your Strategy for a Mortgage Industry Shutdown - John Burns - realestateconsulting.com

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Greenspan Was `Very Bad’ Fed Chairman, Says Artus of Natixis - Bloomberg

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Price tag in mortgage crisis is looking like real money - LA Times

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Moody’s Takes Ratings Action on Six of Citigroup’s Seven SIVs - Bloomberg

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The Real Problem with Securitization - … But once you went to securitisation you created the possibility of the originator having different information from the buyer. … The lesson here is one of the oldest lessons in the history of investing. If you’re lending money, know your borrower, even – especially – if that borrower is a special-purpose vehicle. … Felix Salmon - Portfolio.com

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E*Trade, Wells Fargo and Downey: ‘Subprime’ Problems With Prime Loans – seeking alpha