The government also is still trying to sort out the mess involving mortgage securitization and fouled-up paperwork.
The bank has long been rumored a potential outright buyer of Bear Stearns, attracted to its huge prime brokerage business, and--ironically--to its mortgage securitization business.
And it pre-empts some state laws regarding liability for mortgage securitization.
Inverse floaters are a tool for earning higher yields in an environment with flat to falling rates (through the wizardry of mortgage securitization, they transform falling market rates into higher yields).
The same trends improving the fortunes of Fannie and sister firm Freddie Mac could be less fortuitous down the line if they ultimately bring competition back to the mortgage securitization market.
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Buying mortgage origination and servicing businesses gives investment banks a chance to beef up their mortgage securitization businesses with a source of new loans to package without having to buy them on the open market.
JPMorgan Chase is usually mentioned as a likely buyer of the firm, attracted to its brokerage and mortgage-securitization areas.
Had the Dodd-Frank whistleblower provision been in place earlier, the fraud perpetrated by Bernard Madoff, the rampant subprime mortgage and securitization mess, and BP's alleged manipulation of the propane market, to name but a few events, might have been brought to light far sooner, perhaps preventing their worst effects while earning whistleblowers tens of millions of dollars.
Two of the firm's strongest businesses, fixed-income and mortgage origination and securitization, have taken hits.
Merrill Lynch, acquired the same weekend that Lehman Brothers spiraled into bankruptcy in 2008, has been a strong earnings driver in recent quarters, while the earlier deal for Countrywide Financial has been an anchor on the company due to a host of litigation related to questionable mortgage lending and securitization.
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In the process of loan securitization the mortgage, or deed to property backing up a loan, is usually separated from the note, or obligation of the borrower to pay.
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The rise of Wall Street securitization of MBS (Mortgage Backed Securities), created an almost limitless variety of mortgage products and a market where everybody got approved.
These three are credited as the fathers of the mortgage-backed security and the process of securitization.
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During the real estate boom Countrywide created hundreds of securitization trusts, selling certificates backed by residential mortgage loans.
First, securitization of U.K. consumer, mortgage and business debt has all but collapsed.
For the American Securitization Forum, the trade group largely behind the subprime mortgage explosion, REO-to-rental is the hottest new idea.
Securitization of mortgages played a big part because it meant mortgage servicers had no real incentive to impose strict credit standards on borrowers.
Bank of China's interest in securitization coincides with an unprecedented start to the year for the commercial-mortgage-bond market.
The first thing to point out is that the both the subprime mortgage boom and the subsequent crash are very much concentrated in the private market, especially the private label securitization channel (PLS) market.
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