Who Will Fix The Mortgage Mess?
Well, many are trying and now we can add Lewis Ranieri to that list. He virtually invented the mortgage-backed security. His plan is very interesting and he has raised $825 million so far to help him accomplish this task.
“To mission is simple: to buy delinquent mortgages at a deep discount, work with homeowners to get them paying again, and resell the now stable loans for profit. To get homeowners to do their part, Ranieri is taking the radical step of substantially lowering their mortgage balances.”
And he is actually going to reduce the principle balances. That, in my opinion, is the only way to make them “stable” loans again. This is pretty funny. “It’s not just theory. Ranieri is also doing the “manual labor,” enlisting a handpicked team of workout specialists who bill themselves as “servicers with a soul” and behave more like sunny salespeople than bill collectors.”