Securitised Mortgage

Angry_Cat

In America possessions are being stopped dead as a result of securitisation, why is it not being tried here. There is nothing in the press about it

roonaldo

probably because the state of the US banks put them off. didnt northern rock do this and look what happened to them? sounds like a fantastic idea.

Angry_Cat

In the states repossession by the original lender is being stopped successfully on the basis that once they sell the mortgage they no longer own it and have no rights to start proceedings.

roonaldo

Angry_Cat wrote: »

In the states repossession by the original lender is being stopped successfully on the basis that once they sell the mortgage they no longer own it and have no rights to start proceedings.

no one wants to buy bad debt any more, its too risky. have you heard this country is in a recession? northern rock and lloyds group had to be bailed out.

you are talking of the usa where the lack of regulation and risky lending started the credit crunch in the first place. genius idea.

Angry_Cat

regulation seems to be equally lacking over here

Thrugelmir

Angry_Cat wrote: »

In America possessions are being stopped dead as a result of securitisation, why is it not being tried here. There is nothing in the press about it

Because since 2008 J P Morgan have bought 95% of all issued mortgage securitisation. There's no market for the debt. International investors are bearish on UK property.

Angry_Cat

Thrugelmir wrote: »

Because since 2008 J P Morgan have bought 95% of all issued mortgage securitisation. There's no market for the debt. International investors are bearish on UK property.

Thanks but it doesn't really answer the point I was making

roonaldo

Angry_Cat wrote: »

Thanks but it doesn't really answer the point I was making

the points you made were ridiculous. securitisation helped cause the credit crunch!!!

Thrugelmir

Angry_Cat wrote: »

Thanks but it doesn't really answer the point I was making

You said.

In America possessions are being stopped dead as a result of securitisation, why is it not being tried here.

My point is that there are no buyers. The bull market that ran between 1998 and 2007 is over.

One of the reasons why Northern Rock became insolvent back in 2007/08. NR's debt was sold on by Lehmans who you know well. As they were the providers of your own mortgage.

Angry_Cat

roonaldo wrote: »

no one wants to buy bad debt any more, its too risky. have you heard this country is in a recession? northern rock and lloyds group had to be bailed out.

you are talking of the usa where the lack of regulation and risky lending started the credit crunch in the first place. genius idea.

Thrugelmir wrote: »

You said.



My point is that there are no buyers. The bull market that ran between 1998 and 2007 is over.

One of the reasons why Northern Rock became insolvent back in 2007/08. NR's debt was sold on by Lehmans who you know well. As they were the providers of your own mortgage.

Not entirely accurate, you appear to suggest that securitisation of mortgage debt finished in 2007. I am afraid to say it is still alive and kicking and for the past couple of years, been quite successful as a way of generating funds

As an example since 2007 Lloyds TSB has instigated a number of securitisations

Arkle Series 2012-1
Arkle Series 2011-1
Arkle Series 2010-2
Arkle Series 2010-1
Arkle Series 2008-2
Arkle Series 2008-1

Even Northern Rock continues to use securitisation

Gosforth Funding 2011-1 plc
Gosforth Funding 2012-1 plc

As another example Santander

Holmes 2012-3
Holmes 2012-2
Holmes 2012-1
Holmes 2011-3
Holmes 2011-2
Holmes 2011-1
Holmes 2010-1

Contrary to both of your comments, someone (being numerous financial institutions) is still buying securitised mortgage debt and a lot of it

Angry_Cat

RBS doing it

http://www.mortgagesolutions.co.uk/mortgage-solutions/news/1732853/rbs-launch-gbp47bn-securitisation

Lloyds

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/7104709/Lloyds-raises-first-US-fund-since-crisis.html

Northern Rock

http://uk.reuters.com/article/2011/03/22/northernrock-idUKLDE72L0UQ20110322