Fed gives Tanta a Hat Tip
From Adam Ashcraft and Til Schuermann: Understanding the Securitization of Subprime Mortgage Credit
See page 13:
Several point raised in this section were first raised in a 20 February 2007 post on the blog http://calculatedrisk.blogspot.com/ entitled “Mortgage Servicing for Ubernerds.”
Note: there is link in the menu bar for ’s UberNerd series: The Compleat UberNerd.
Here is the introduction:
How does one securitize a pool of mortgages, especially subprime mortgages? What is the process from origination of the loan or mortgage to the selling of debt instruments backed by a pool of those mortgages? What problems creep up in this process, and what are the mechanisms in place to mitigate those problems? This paper seeks to answer all of these questions. Along the way we provide an overview of the market and some of the key players, and provide an extensive discussion of the important role played by the credit rating agencies.
In Section 2, we […]
