nancylebov (nancylebov) wrote,
nancylebov
nancylebov

Why don't they.....

As I understand it, a big piece of the financial crisis is that no one knows which loans are good and which ones aren't. The vast majority of home loans are good, as I understand it. Some of the bad ones could be made good by renegotiating the interest down to ordinary rates.

So why isn't anyone tracing down which mortgages and parts of mortgages are in which funds, and then doing the credit checks which should have been done in the first place?

This is really valuable information. It would take a big investment to get it, but you could charge quite a bit for it, and/or save your bank with it. I think the job would get cheaper and easier as you found out who was making most of the bad loans.

So, am I just plain wrong about the situation? Or is the job too hard? Are people in the industry panicking so much they can't think? Is the industry so jammed up that no one can raise the money to get the information? Or is it so embarrassing and/or likely to impose so much legal risk that the information isn't available?

Addendum: And why isn't the government doing this? It would be a lot cheaper than the bailout.
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