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ADV: Affordable Health Insurance – Free Quote  Affordable health, dental, and life insurance for you and your family. Fill out our form for a competitive quote.via


Eco-friendly living finds home in valley  Stormville resident Deborah Monroe is thinking about the future. Deborah plans to bring Josephine Ambucci Sila, from Kenya, to live with her to pursue a nursing career.read more...


Hidden charges hit mortgage borrowers (The Herald)  Mortgage lenders are clawing back some of the money they lose in competitive interest rates with hidden charges for borrowers. They are charging for a variety of services, sometimes with


Courthouse repairs are taking a step up  Crews are working this week to install control joints in the three sets of concrete steps that lead up to the Montgomery County Courthouse.via


Mortgage auction aims to cut cost of borrowing (Financial Times)  An online mortgage buying service, launched on Monday, aims to drive down the costs of borrowing for consumers by making lenders bid for their business.read more...


Pinal Co. housing market slows  Pinal County is feeling the effects of the Valley's overall housing market cool down."> Pinal Co.read more...

May 9th, 2008

A New System to Prepare for the Next Crisis

Last week, I discussed what I see as a serious weakness in the way the mortgage system deals with default risk. Essentially, interest rate risk premiums collected from borrowers that are not needed to meet current losses are paid as income to investors and not reserved to meet future losses.



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