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Mortgages are a manufactured product (2022)

bitsaboutmoney.com

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Re: Mortgages are a manufactured product (2022)

#21

Post by refurb »

yareal wrote: post #10
abrichr wrote: post #8

Earlier quoted context omitted.

FTA: > A widespread misconception about mortgage securitization is that it was created to make Wall Street rich. … > Mortgage securitization, and secondary sales of loans, and other mechanisms cause mortgages to migrate from the banking sector to pools of capital which are more structurally insulated against the interest rate cycle.

Which has the effect of....? At the end of the day, the reasons these choices exist is to make someone rich. The mechanism (shielding from interest rate cycles) is just an implementation detail.

It has the effect of being able to provide homeowners with cheap 30-year fixed mortgages.

I'm surprised you're against it.

Re: Mortgages are a manufactured product (2022)

#22

Post by sanxiyn »

I know this post is about money, but I want to talk about electronic flow meters than money so I will. The description of "Japanese company making the best electronic flow meters" strongly suggests it is Keyence. They are the best indeed.

Keyence is the 3rd largest Japanese company by market capitalization, next to Toyota and Japan's largest bank (Mitsubishi). Larger than Sony, larger than Nintendo, larger than Honda, etc. Keyence does sensors and nothing but sensors.

If you want to learn about the science of flow meters, you can visit a site maintained by Keyence, Flow Knowledge. Where you read that electromagnetic flow meters (this is proper name for "electronic" flow meters, which may be used for lay audience) detect flow by using Faraday's Law of induction.

https://www.keyence.com/ss/products/process/flowknowledge/

Re: Mortgages are a manufactured product (2022)

#23

Post by Joel_Mckay »

refurb wrote: post #20
Joel_Mckay wrote: post #4

The securitization of mortgages, health care, and education. All were simply fund-managers monetizing other peoples misery, and now many are realizing every party line is the same BS. People are angry, but often for the wrong reasons since wall-street washes accountability by design. Unfortunately, ridiculous wealth and miserable populations seem a desirable trade in some cultures. Thank god it is not my task to try…

> All were simply fund-managers monetizing other peoples misery No, mortgage securitization simply provides a simple, consistent product that you can sell to investors. Securitization was created by the government , not by a banker. It allows homeowners to access capital that they otherwise couldn't - it's a pretty limited pool of investors willing to buy individual, non-conforming mortgages. If mortgages weren't sec…

Prior to Michael Milken, there were legal standards in place mitigating adopting risks others would bear unnecessary liability to cover.

Profit at any price as they say... =3

Re: Mortgages are a manufactured product (2022)

#24

Post by forgetfreeman »

djbusby wrote: post #17
Joel_Mckay wrote: post #13

Earlier quoted context omitted.

Counterpoint: unless the value siphon effectively steals opportunity cost options from you 25 years before you are born. It takes real ignorant psychopathy to blame victims of the greatest crime in history.

What's the crime? Mortgages? I'm not following you. Some generational wealth theft somehow?

I'm guessing this is in reference to the first shitheads to decide manufacturing synthetic investment instruments backed by home mortgages was a good idea?

Re: Mortgages are a manufactured product (2022)

#25

Post by Joel_Mckay »

djbusby wrote: post #17
Joel_Mckay wrote: post #13

Earlier quoted context omitted.

Counterpoint: unless the value siphon effectively steals opportunity cost options from you 25 years before you are born. It takes real ignorant psychopathy to blame victims of the greatest crime in history.

What's the crime? Mortgages? I'm not following you. Some generational wealth theft somehow?

Read about Michael Milken and his friends... then reevaluate the context of the flippant hostile responses.

There is a valid argument that one can't steal something if it no longer has value son. ;-)

Re: Mortgages are a manufactured product (2022)

#26

Post by forgetfreeman »

refurb wrote: post #21
yareal wrote: post #10

Earlier quoted context omitted.

Which has the effect of....? At the end of the day, the reasons these choices exist is to make someone rich. The mechanism (shielding from interest rate cycles) is just an implementation detail.

It has the effect of being able to provide homeowners with cheap 30-year fixed mortgages. I'm surprised you're against it.

Conversely I remain surprised to this day that several hundred execs didn't end up with multi-decade long prison sentences for bricking the global economy with this bullshit.

Re: Mortgages are a manufactured product (2022)

#27

Post by dpe82 »

rwmj wrote: post #18

> A mortgage has a quirky little subcomponent called a Mortgage Servicing Right (MSR). Every month, it needs to collect money from the borrower and send that money… somewhere. This implies, minimally, a mailbox where you can send checks, someone to open the mail, and a phone number with a CS representative who can answer questions like “What is my current balance?” and “Did you get the last check I sent you?” Like, s…

Yes, some people in this world still prefer to operate with paper checks and use the telephone.

Re: Mortgages are a manufactured product (2022)

#28

Post by SomeCollegeBro »

rwmj wrote: post #18

> A mortgage has a quirky little subcomponent called a Mortgage Servicing Right (MSR). Every month, it needs to collect money from the borrower and send that money… somewhere. This implies, minimally, a mailbox where you can send checks, someone to open the mail, and a phone number with a CS representative who can answer questions like “What is my current balance?” and “Did you get the last check I sent you?” Like, s…

The majority of people pay online. Obviously the mail and phone options need to be available too though.

Re: Mortgages are a manufactured product (2022)

#29

Post by refurb »

forgetfreeman wrote: post #26
refurb wrote: post #21

Earlier quoted context omitted.

It has the effect of being able to provide homeowners with cheap 30-year fixed mortgages. I'm surprised you're against it.

Conversely I remain surprised to this day that several hundred execs didn't end up with multi-decade long prison sentences for bricking the global economy with this bullshit.

I’ll tell you why - because the government promoted it. Fannie and Freddie were complicit.
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