Reply #71: I just had an interesting chat with my boss about the housing bubble

[Cant trust em]

So I work for an economic development agency in San Francisco and one of our programs is homeownership counseling. Our ED sits on the board of an organization that makes sure that banks are servicing needs of California. They just had a meeting with US Bank about their role in holding mortgages, being the servicer, and acting as the trustee for the investors who have purchased the mortgage backed securities. There is little relationship between the homeowner and their initial mortgage, and the investor who now owns the security. If the value of the mortgage goes down, the investor is shielded from that loss.

Thanks for your posts today. I've enjoyed our exchange.