Originally Posted by brewer12345
Nope, mortgage insurance was mostly not used in the bubble market because 80/20 piggyback structures were far cheaper than paying PMI.
Don't know as I have been out of that business for 6 or 7 years.... maybe I could ask an old friend, but most have gone onto structured deals and left the mortgages behind...
But, no matter, the deals were structured where there were 'safe' traunches and 'risky' traunches. You would think that the people buying them knew what they were buying... then again, you used to hear how someone lost millions buying IO bonds and the interest rates were going down..