What We're Hearing

I had an interesting conversation with Jeff Freud of LoanMarket.net the other day. LM offers individual investors (via the magic of the Internet) an opportunity to buy delinquent mortgages -- one a at time. Buyers must pay cash. Mr. Freud insists that banks are indeed selling nonperforming loans and a handful of Wall Street firms are running trading desks geared toward the product. I asked him how come no banks are publicizing their sales? His response: "If they admit they're selling it will drive down prices." It's a wild and whacky world out there. I know this: based on the brand new delinquency figures released by the Mortgage Bankers Association (which I married to data collected by National Mortgage News for its Quarterly Data Report) there has to be at least a $1 trillion in delinquent loans out there that need curing. Loan modifications aren't going to do much good unless Americans get back to work...