Suddenly, some members of the GOP realize they actually will be part of the government

Alan Zibel writes in the Wall Street Journal: Earlier this year, leading House Republicans proposed to privatize mortgage giants Fannie Mae and Freddie Mac or place them in receivership starting in two years. Now, as Republicans prepare to assume control of the House next week, they aren't in as big a rush, cautioning that withdrawing [...]

Yves Smith gives Five Rules for Private Label Mortgage Securitization

They are: 1. Mortgages must be seasoned 12 months before they can be securitized 2. The originator must retain at least a 5% interest in the credit risk of the assets sold 3. The interest of all parties to a transaction must clearly be disclosed, along with their fees 4. Re-securitizations (meaning CDOs) are severely [...]

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