Re: Debt (Was: How much is a FICO score worth?)

Elle wrote:
> "joetaxpayer" <joetaxpayer@[EMAIL PROTECTED]
> wrote
> 
>>In the 'old days' mortgages were kept at the bank writing 
>>them and provided income to the bank and the source of 
>>funds to pay interest on deposits. I don't see that going 
>>away anytime soon.
> 
> 
> Post-o, or maybe I am misunderstanding your words? I thought 
> the credit crisis's origin was based in part in banks 
> selling their mortgages (or repackaging them), and then 
> their being sold again, until multiple layers existed, 
> ostensibly to cover the risk of owning mortgages.

My (poorly worded) point is there will always be a source of revenue for 
banks to pay on their deposits. Collateralization certainly played a 
role in the current crisis, but not every bank sells their mortgages. 
For my current house, in it 12 years, I've only dealt with two banks, 
both of which were committed to keeping the notes in house. The current 
one saw me through 2 refinances done at no cost. This would not have 
happened the way it did had my loan been collateralized (sold into a
pool).
You may tell me my experience is rare, that X% of loans are not held. 
Ok, that may be, but I think the rate has bottomed out, that fewer 
loans, not more, will be sold. Way off original OP's topic, but the 
in-house mortgage was part of what I felt was sound planning.

Joe

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