Tuesday, May 29, 2007

Chinese investors among those to lose shorts on housing bust

Per National Mortgage News, “In 2002, Chinese investors owned about $100 million in U.S agency MBS. Now they own well over $110 billion, a nearly 1,000-fold increase in less than five years"...that would be a significant factor in the ability of mortgage brokers to originate all of the weak loans that are now defaulting...it is highly likely that these investors didn't look too closely at the risk disclosures that came along with the mortgage backed securities they purchased...

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