It's nominally different. Same net effect upon capitalization which was my main point. Whether they own 100% or own 97% of them this is negligible in terms of ability to create CDOs
No, you don't understand who profits, who owns and who gets to hold the risk bag. The distribution is different and thus are failure points and who falls if it fails.
I understand the difference. Are you understanding my point about the practical similarities? If they "own" 97% of a property as first in lien it's essentially the same thing as buying and renting. The mortgage holder can walk away and then it goes to short sale this the risk profile for lenders of bullish
It's nominally different. Same net effect upon capitalization which was my main point. Whether they own 100% or own 97% of them this is negligible in terms of ability to create CDOs
No, you don't understand who profits, who owns and who gets to hold the risk bag. The distribution is different and thus are failure points and who falls if it fails.
I understand the difference. Are you understanding my point about the practical similarities? If they "own" 97% of a property as first in lien it's essentially the same thing as buying and renting. The mortgage holder can walk away and then it goes to short sale this the risk profile for lenders of bullish