Here we have a picture of External Collateral File. If CDO's were potato chips, you might view this as a picture of each potato chip in the bag. If you were investing in a bag of potato chips, for your garden party, you would want a reasonable number of chips in your bag, bite-size or close, without a lot of crumbly pieces, and you would definitely want 10.5 ounces, so your guests might have a three-ounce serving each. Nobody can eat just one. If you are expecting 28 guests, you will need 84 ounces of servings, or eight bags full. And all the chips must be light, classical...none of those BBQ Texas Waffle Fries.
phh_ecf_all.numbers | |
File Size: | 469 kb |
File Type: | numbers |
So here we have a big bag of mortgages, or collateralized debt securities. There are 2254 mortgages 'chips' in this bag. This is bag 1 of 3 that PHH packaged in 2007. Some of these 'chips' are indeed scrawny crumbled little things of only 7 years, 2.875% interest, already upside down since the day they were written, but there are a few giant size 'chips' that are quite respectable and very filling, 10.913% interest for 20 years or even less. The main attraction is that you don't have to argue with these owners every month, you don't care if they have a job or don't have a job, you don't care if their kids need braces or even if they have kids, you don't care if their car breaks or runs, the money comes in regular as clockwork, and you are only buying one year's worth anyway. At the end of the year you give back the unused chips, keep only what you have consumed, and it is someone else's problem after that.
This bag of chips can also be viewed as a Certified Class of Consumers. These people have surrendered the collateral value of their home to a flim flam man. The flim flam man has stuffed their house into his carpetbag, which he keeps stuffed fat as a sausage, and carries it from hotel to hotel, doling out bits of money occasionally to those innkeepers who for some reason eschew the attractive reinvestment opportunities, and occasionally reaches into the bag for a plump juicy breakfast sausage for himself before the next day's travels. His battle cry is 'I'll be Gone, You'll be Gone, but let's take the money with us!'
And here we have a sample securitization audit available for your individual mortgage:
This bag of chips can also be viewed as a Certified Class of Consumers. These people have surrendered the collateral value of their home to a flim flam man. The flim flam man has stuffed their house into his carpetbag, which he keeps stuffed fat as a sausage, and carries it from hotel to hotel, doling out bits of money occasionally to those innkeepers who for some reason eschew the attractive reinvestment opportunities, and occasionally reaches into the bag for a plump juicy breakfast sausage for himself before the next day's travels. His battle cry is 'I'll be Gone, You'll be Gone, but let's take the money with us!'
And here we have a sample securitization audit available for your individual mortgage: