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They signed 47 application and disclosure documents, affectionately known as the mortgage application package, pinky-swearing that everything they told us was true and pledging their eternal loyalty until the loan is paid back on time, in full!
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So the package is more like taking out a mortgage to rebuild your house than running up your credit-card bill.
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Investor demand for mortgage-backed securities--and banks' eagerness to buy loans, package and sell them to this hungry crowd--helped create the incredible run-up in the mortgage market over the last three years.
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The package allows Norwegian banks to swap toxic debt products like mortgage-backed securities for new government bonds, which can then be used as collateral for borrowing from the central bank.
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Buying mortgage origination and servicing businesses gives investment banks a chance to beef up their mortgage securitization businesses with a source of new loans to package without having to buy them on the open market.
FORBES: Magazine Article
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Moreover, having pushed through a particularly expensive and unpopular scheme to liquidate seven jusen, or mortgage companies, last year, the government does not feel it can come up with yet another rescue package at the taxpayer's expense.
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