3 ms·
interestingly, most of FRCs loans seemed to be residential real estate to wealthy people at crappy rates now (like most mortgages written in the last few years
by 0zemp2c 3y ago
interestingly, most of FRCs loans seemed to be residential real estate to wealthy people
at crappy rates now (like most mortgages written in the last few years), but these borrowers seem extremely unlikely to default (and they can't refinance advantageously now so they are kinda stuck paying FRC)
- smcin 3y agoi.e. was overly concentrated in the SF real-estate bubble.
- Scoundreller 3y agowhile unlikely to default, also extremely unlikely to payoff early because of a move or death.
- CydeWeys 3y agoThe issue isn't that the loans are likely to default, it's that the present value of those loans has gone way down as even short term securities have higher interest rates now. If you need to sell those loans you'll take a large haircut on them.