Paydown Quotes

“cash”
― Nick Stephenson, Paydown

“bank gives some poor schmuck a mortgage at 100% the value of his property. No deposit. The bank sells the debt off to a larger bank in return for instant cash. The larger bank bundles up a hundred crappy mortgages like this and sells insurance policies for ten cents on the dollar – because their analysts tell them it’s a sure thing. They do this with thousands of loans. The mortgage securities market grows. Nothing can go wrong, right?” “Until the homeowner can’t make his repayments.”
― Nick Stephenson, Paydown