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Real Estate Clear Lake California

Real Estate Broker/Owner with Gold Circle Realty

Is the money gone for mortgage backed securities?  Does anyone really care?  Probably not, but the government is trying to follow Europe's lead in the method of choice for financing the issuance of residential mortgages to the public, and it looks like that is going forward.

Secretary of state Paulson today, released to the press, that 4 big banks, with the U.S. treasury department backing, are pursuing the issuing of covered bonds as a way to finance the issuing of mortgages on residential property in USA.  The big banks are JP Morgan Chase, Bank of America, Citicorp, and Wells Fargo. 

What these covered bonds are is a way for these institutions to get the financing, while guaranteeing that these bond instruments used to provide the funds are safe for the investor.  I guess that means that the Europeans haven't lost a dime betting on residential mortgage directed financing instruments based on covered bonds. 

Paulson does reveal that these new instruments for the mortgage market in the U.S. are not to be considered the new reason-to-be.  He doesn't think they will cure all the ills of the current system, and don't count on that happening.  So I guess we can't count on our homes going up and up in value and our mortgage rates going down down in cost for ever; while maybe taking small breaks for us to spend money.  Maybe some good mid-ground can develop though hopefully can develop from the covered bond mortgage in the U.S.  But one must consider too, that the public are expected to pay these mortgages, no matter whatever mortgages are offered them.  That literally 'can' mean a lot of programs develop to get citizens homes they can't afford normally.  Socialism creeps in deeper, then too, to keep the big real estate ball rolling.  But if the big ball is rolling soto speak is rolling, how can everybody be 'rich' at the wages offered many.  I guess the good life is better be in the mind somewhere than at the bank or gas pump and then people are renters not buyers in the game, and that is important. 

A new mortgage bailout law or legislation a month is spooky.  Makes you wonder how they keep track of where the money went from last month.  Sounds like there up to the trillions in bailout cash.   A lot of conservative mortgage brokers, such as myself would have to say I told you so.  Live wreckless die wreckless. But it's our country' not some, 'theirs'.  Got to watch the budget.  You would want a equitable system that payed all for good hard work not reward you with no money for food maybe because you lost your shirt buying a house you no longer own because you managed to get it taken away from you.  Yeah!  People don;t need all those disappointments in the brain on a regular basis. 

You got to sympathize with the treasury department and the banks too.  As the banks go under they and the feds are trying to balance high home prices with no rise in income for the little man.  All the little man has got in the mortgage security thing is the ability to get and default on mortgages over and over.  Mortgage rates would have to disappear it seams to solve the situation.  That is the worse!  Some wise apppearing commenters are as always optimistic that the current events in the housing market is

Larry Littlejohn, Broke and agent for Gold Circle Realty, Clear lake Area of Lake County California 707-998-3035,  larry@goldcirclerealty.com