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I am impressed by the energy of this Mr. Mortgage guy! He's right about Lehman's lending practices as well. Unlike Bear, they were vertically integrated and actually underwrote loans to feed thier MBS pipeline. They were quite generous in giving out mortgages as well. Remember, I used to be a residential real estate investor in the NYC metro area. I know much of this from first hand experience. Methinks Lehman is next for a full scale forensic analysis. I will post a full blown forensic of Morgan Stanley, pt. 2 in a few housrs, including a decent amount of their so-called hedged level three assets, as granular as the CUSIP numbers for the securities.