Why Ownit is a potentially huge deal
This is changing, fast. Ownit's demise ... and other reports of a rapid deterioration in mortgage credit quality, which I've been chronicling here ... appear to be putting some fear in the heart of subprime mortgage bond buyers. This development definitely bears watching. IF lenders are forced by the secondary mortgage market to tighten loan standards, it could exacerbate the downturn by making it tougher for marginal buyers to obtain mortgages to purchase homes.