• Mortgage-Backed Securities I
• Mortgage-backed securities III
• Former Taylor Bean & Whittaker chair Lee Farkas Charged with Securities Fraud
• An Introduction to Mortgage Backed Securities
• Defining Mortgage Backed Securities
• Investing in Various Types of Real Estate Securities
• Mike Gasior – Mortgage Backed Securities
• Mortgage Backed Securities Analysis
• La Reserva Federal anuncia que ya no comprara prestamos (Mortgage Backed Securities)

25 Responses to “Mortgage-backed securities II”

1. SuchisLifeIA Says:
   February 16th, 2007 at 2:49 pm

   continued.. who made the extra layer and stimulated the purchases, are the ones who should be bailed out. Hmm.. do you have lessons on the bail out plans and the medical overhaul?

2. SuchisLifeIA Says:
   February 16th, 2007 at 3:08 pm

   So.. the person in the red is the person who went to buy the house. He also purchases those stocks for his retirement, and he is the one who loses his job. Since he is losing at both ends, he kind of changes the easy money scene for those with their secure securities. Without those taking out the home loans and buying the stocks disappear from the market because they have no job. Ok.. thinking thoughts. I’ll go back to listening. I’m waiting to hear why in this framework the large companies

3. CBossyful Says:
   February 16th, 2007 at 3:42 pm

   Since the investors are buying loans, its a type of bond.

4. TomekLeeChan Says:
   February 16th, 2007 at 4:26 pm

   So this “shares” are stock or bonds?

5. Kikkan110 Says:
   February 16th, 2007 at 4:59 pm

   It makes 5m risk free, but it could have made much more with some risk in the long run (according to this model) if it would keep its loans. The irony is that if banks starts to behave this way the banks who operates more traditional (not sell their loans) would be stuck with all the downside if (when) the housing market tanks. So a bank has every incentive to get rid of housing loans and make short term profits and thus further increase the incentive to make rotten loans.

6. catharthic Says:
   February 16th, 2007 at 5:53 pm

   i think it is because they are getting cash (lots of it) every time they try this model…then they can replicate it again and gain more cash in one short period of time rather than over the course of 10 years even if it would have been more.

   someone correct me if i am wrong.

7. akshayswaroop Says:
   February 16th, 2007 at 6:15 pm

   Amazing!!

8. guccianaa Says:
   February 16th, 2007 at 7:14 pm

   well done

9. honolulutradewind Says:
   February 16th, 2007 at 8:03 pm

   Who allowed the Banks to sell their right to the investment bankers? Who manipulated or changed the law/rules/ regulations? Unbelivable. Unlimted greed. super presentation.
   Who( Entity) is in charge of the rules and regulation of the banks?

10. honolulutradewind Says:
    February 16th, 2007 at 8:34 pm

    Who allowed the Banks to sell these right to the investment bankers?
    Obviously there was a law or rules and regulations, who broke all these for their greed. Unbelievable.
    thank you for your presentation, superb!

11. bananaminge Says:
    February 16th, 2007 at 8:39 pm

    superb presentation

12. kolomgorov Says:
    February 16th, 2007 at 8:47 pm

    Thanks so much for this series. I’ve been wondering what was at the bottom of this whole mess for a while now.

13. MiriZemel Says:
    February 16th, 2007 at 9:11 pm

    Great presentation — so helpful.

14. 2fuck2shit2 Says:
    February 16th, 2007 at 9:47 pm

    What is the Key disfavors by Having Your Mortgage

    realmortgagepaid.blogspot. com

15. DCady452 Says:
    February 16th, 2007 at 10:45 pm

    K110, if you are referring to the bank that 1st made your loan when you ask about the “small commercial bank”, by selling its loans it is deferring the risk to the purchaser of these loans. Remember in this vid and a previous one that the small commercial bank receives a fee for acquiring the loan (I think 5000 is used) it would receive 5M (5000X1000) on virtually no risk (which has all been deferred with the sale of the mortgages). Therefore the bank makes a basically risk-free 5m profit.

16. Kikkan110 Says:
    February 16th, 2007 at 11:42 pm

    Why would the small commercial bank sell its loans when it would earn much more by keeping them and collect the payment stream from the borrowers?

17. Lunatic4ever Says:
    February 17th, 2007 at 12:27 am

    yeah,your the man

18. ILoveGoodFellas Says:
    February 17th, 2007 at 1:18 am

    god damn it, you need a show on CNBC, i swear to god

19. pagalmadman1 Says:
    February 17th, 2007 at 1:21 am

    u know how to present very very well…….thnx again

20. MrMortgage1 Says:
    February 17th, 2007 at 1:26 am

    A good mortgage is like a work of art.
    mortgageartist. com

21. MrMortgage1 Says:
    February 17th, 2007 at 1:52 am

    cool

22. romish12 Says:
    February 17th, 2007 at 2:51 am

    i have a question!! when you buy get a loan for a house you actually paying only the interest? or the principle also?

23. nanassaki Says:
    February 17th, 2007 at 3:15 am

    Thanks for updating the video, it’s very useful but i’m super headache with the picture

24. high5flyer Says:
    February 17th, 2007 at 3:46 am

    The commercial bank (white) does this to be able to make a loan and get fees. However, once they make the loan they no longer have as much in their deposits to make more loans to others. The commercial banks gets that money back (principal) by selling the rights to the loans cash stream (monthly payments) to an Investment Bank (green). The investment bank then sells those same rights to individual investors (blue). They pocket in this example $100 million just for being an intermediary.

25. hakker2002 Says:
    February 17th, 2007 at 4:08 am

    lol that is why we r in this financial crisis all thx to ABS, MBS, CDO and Credit difoult swaps CDS, do not learn this or i will be very conserned in US banking system in the future

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