Comments on: Is the Federal Home Loan Bank System Hiding Risk ? http://blownmortgage.com/2008/11/14/is-the-federal-home-loan-bank-system-hiding-risk/ #1 Free Home Loan Modification & Debt Relief Help For US Home Owners - Truths, Facts & News About the Mortgage Industry Sat, 07 Nov 2009 02:53:18 -0700 http://wordpress.org/?v=2.8.3 hourly 1 By: Loans Modifications http://blownmortgage.com/2008/11/14/is-the-federal-home-loan-bank-system-hiding-risk/comment-page-1/#comment-14178 Loans Modifications Sun, 18 Jan 2009 23:11:02 +0000 http://blownmortgage.com/?p=1672#comment-14178 I think so, Well loans modifications no doubt are helpful.. I think so, Well loans modifications no doubt are helpful..

]]> By: Real Estate Raj http://blownmortgage.com/2008/11/14/is-the-federal-home-loan-bank-system-hiding-risk/comment-page-1/#comment-11968 Real Estate Raj Sun, 16 Nov 2008 21:07:51 +0000 http://blownmortgage.com/?p=1672#comment-11968 As a banking neophyte this post is a little hard for me to digest, but it appears the FHLB is making high risk loans and hiding it by purposefully not doing their homework. Shocking. As a banking neophyte this post is a little hard for me to digest, but it appears the FHLB is making high risk loans and hiding it by purposefully not doing their homework. Shocking.

]]> By: Banker http://blownmortgage.com/2008/11/14/is-the-federal-home-loan-bank-system-hiding-risk/comment-page-1/#comment-11967 Banker Sat, 15 Nov 2008 00:08:09 +0000 http://blownmortgage.com/?p=1672#comment-11967 As an ex- bank portfolio manager, I can tell you that I used to borrow from the FHLB using loans and mortgage backed securities as collateral. I am hearing that the FHLB has been looking the other way throughout the entire crisis and hasn't marked to market collateral, worried that some banks might not be able to post more collateral or pay down their debt.<br><br>If you borrowed 500mm and at the time posted 550mm in mortgage backed securities (which now are worth 60cents on the dollar or 330mm), you either have to post 220mm of additional collateral or pay down nearly half of the 500mm debt. As an ex- bank portfolio manager, I can tell you that I used to borrow from the FHLB using loans and mortgage backed securities as collateral. I am hearing that the FHLB has been looking the other way throughout the entire crisis and hasn't marked to market collateral, worried that some banks might not be able to post more collateral or pay down their debt.

If you borrowed 500mm and at the time posted 550mm in mortgage backed securities (which now are worth 60cents on the dollar or 330mm), you either have to post 220mm of additional collateral or pay down nearly half of the 500mm debt.

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