Income from the bonds came from the mortgage payments made by home buyers. They were given amortization tables showing monthly payments and interest rates as fixed for 25 or 30 years. A 2008 internal report by the Federal Mortgage Society cited fabrication of documents and collusion between builders and mortgage lenders as factors in the sharp rise in defaults. The Mexican loan pipeline was hailed at a 2007 finance industry gala at the Ritz-Carlton in New York City. She paid 328,000 pesos (about $27,000 under the 2006 exchange rate), financing the purchase through a 25-year UDI loan and a smaller government loan.

Source: Los Angeles Times November 26, 2017 10:07 UTC