http://www.ofcounselconsulting.com/2008/10/is-suspension-of-mark-to-market-rule-irrelevant/ Best Practices Business and Technical Consulting For Law Firms Tue, 10 Mar 2009 01:07:23 +0000 hourly 1 http://wordpress.org/?v= http://www.ofcounselconsulting.com/2008/10/is-suspension-of-mark-to-market-rule-irrelevant/comment-page-1/#comment-55 johngabriel Tue, 10 Mar 2009 01:07:23 +0000 http://www.ofcounselconsulting.com/?p=518#comment-55 THe true value of a mortgage is the present value of cash flows on mortages in in delinquency. Those in delinquency can be further discounted based on a bank's delinquency pattern of mortgages that go into default once they are delinquent by 1,2, or 3 months then foreclosure. The discounted value of the discounted cash flows of delinquency's should not drop to zero as there is a inherient salvage value to the asset albeit it could be the market value on these identified mortgages. THe true value of a mortgage is the present value of cash flows on mortages in in delinquency. Those in delinquency can be further discounted based on a bank’s delinquency pattern of mortgages that go into default once they are delinquent by 1,2, or 3 months then foreclosure. The discounted value of the discounted cash flows of delinquency’s should not drop to zero as there is a inherient salvage value to the asset albeit it could be the market value on these identified mortgages.

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