Mortgage Loans Expert Witness On Foreclosures Part 3

In Ask the Expert: How the Securities Foreclosure Mess Happened, mortgage loans expert witness Maher E. Soliman writes on the Conditional Prepayment Rate:

The CPR is the measurement of prepayment speed determine from reversion (sale of a home) refinance or the opposite end of the spectrum which is delinquency and default. Mortgages originated over the last decade were attributed an estimated holding time or CPR of say 60 months. Other things that influence price and for understanding the lenders desire to become fixated with the sub prime mortgage sector are subject to ethical scrutiny. I am referring to extreme maximum leverage used to buy loans and the introduction of something called accounting practices such as derecognition. The latter is suspect, according to many accountants, as it offer no real value to a transfer and subject to entering a “gain on sale.”

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