Biggest Ponzi Scheme in the history of the country. How many of these dudes are in prison for what they did? Barney Frank? Chris Dodd? No, I didn’t think so.
You sound like an idiot. Richard Cordray was appointed by Obama when congress was still in session. Again, ignoring our conststution. Big business, small business- this administration has NO BUSINESS getting involved in either.
They’re just kickbacks. The companies structured them as excess of loss (XOL) captives with attachment points they expected never to reach. The bank would essentially get 25-30% of the MI premium virtually risk-free.
Then lo and behold, the housing bubble popped and losses started reaching the attachment points. So the banks had the mortgage insurers “unwind” the captives so that the banks wouldn’t experience the losses.
It was always “heads I win, tails you lose” for the banks, and the MIs participated in the scam willingly for market share and to avoid reducing prices in the low loss times.
About time! What a scam!
Biggest Ponzi Scheme in the history of the country. How many of these dudes are in prison for what they did? Barney Frank? Chris Dodd? No, I didn’t think so.
You sound like an idiot. Richard Cordray was appointed by Obama when congress was still in session. Again, ignoring our conststution. Big business, small business- this administration has NO BUSINESS getting involved in either.
Sorry, I meaant this for the prior comment!
Having a bad Monday reader? Every Monday is a bad day when you see corruption revealed at the highest levels.
They’re just kickbacks. The companies structured them as excess of loss (XOL) captives with attachment points they expected never to reach. The bank would essentially get 25-30% of the MI premium virtually risk-free.
Then lo and behold, the housing bubble popped and losses started reaching the attachment points. So the banks had the mortgage insurers “unwind” the captives so that the banks wouldn’t experience the losses.
It was always “heads I win, tails you lose” for the banks, and the MIs participated in the scam willingly for market share and to avoid reducing prices in the low loss times.