I don't want to be a Shadow Earth to Casey's Amber but people have been asking for summary comments so they don't have to wade through and/or add to his click count so I'll up postings. Play nice. This means some scrolling as multiple threads will be active at the same time and really, nobody needs to know that he's an a$$hat or that it is all a scam, etc. That said, making fun of Jettas and other Gen Y epicaricacy is always welcome as is Baby Boomer Bitchin'. Jump in.
So, his illegal attempt to wrap the Utah house unwrapped. My take:
Robert Coté
December 8th, 2006 at 8:05 am
Wow, who saw this coming? [raises hand]
What would my morning be without my daily Sputnik? That damn cat owes me a few keyboards; coffee, beer sprayed all over the place. Thhhhpft. Hey, I think www.dailysputnik.org is available.
Anyway, let’s play good news/bad news. Good news, your conveyance wasn’t probably legal. Bad news, lawyers cost money. Good news, the agent isn’t owed the comission. Bad news, good luck getting it back. Good news, Utah isn’t too far to drive. Bad news; uhhh Jetta. Good news; the blog has an interesting topic. Bad news, not all attention is good attention. Good news, with so many actors the pentultimate courtroom scene is liable to resemble “What’s Up Doc?” Bad news, you’ll be playing the Striesand character and the judge won’t be your daddy.
Well enough, off to “work.” Got my tea (40 bags, 99 cents Trader Joes 2 for1), got my cup (free, some healthcare client promo), got my thumbdrive ($9.99 1Gb Frys), got my new office (TuffSheds $40/sf including granite countertops), got my laughs for the day and a new story to follow. I smell a roadtrip!
December 8th, 2006 at 8:51 am
It was so obvious I didn’t even bother to explain previously. The Utah “buyers” were in with the agent. The agent got a few percent and the “buyers” got the rest as cash back at closing. Sweeeet. Best part is they knew the wrap wasn’t binding. They got their money, got to live there for a few months and left Casey holding a bigger bag. Hey Casey, wanna buy some sweeeet tranches from Ownit?
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Everyone understand about Ownit? The mortgage broker industry is bening killed. No, not dying, murdered. The secondary market is cramming back "bad" loans they know the originators a cannot cover. It's like forcing someone out of a poker game because they cannot match the raise. No split pots, just cover the bill or die. Good for the secondaries, bad for the brokers.
At the very least, if you laughed at the "What's Up Doc?" comment, tell me. Feedback will help determine future post content.
15 comments:
I definitely laughed. You have a gift for written humor, especially of the macabre variety.
"The mortgage broker industry is bening killed. No, not dying, murdered. The secondary market is cramming back "bad" loans they know the originators a cannot cover."
I don't follow your comment.
You can't cram a mortgage broker because a mortgage broker may not lend.
I couldn't slog through that podcast. How much did that malignant little tumor say he makes off his blog in AdSense fees?
First, pick a handle, any handle just to keep things straight. Thanks.
Anon 4:16,
The secondary market purchases bundled packages of multiple mortgages from mortgge brokers. Durring the first year (typically) if the loan has any problems the broker may be obligated to repurchase the "bad" loan from the secondary. In normal times the secondary doesn't care about a little lie or a late pay but in tough times they can use those little things to force the originator to buy them back.
Anon 4:38,
I downloaded and fast forwarded to the interesting stuff. He doesn't answer about Adsense! He calls it a good question and dances a bit but nothing. Same for denying Galina's liability, he's still looking into it. Same for the PrLinkBiz contract details. He claims he's living up to confidentiality and trying to buy out her interest. Casey is all sizzle and no steak.
Hey Robert,
Thanks for doing the heavy lifting for me and subjecting yourself to listening to that moe ron. I wonder how much a really heavily-trafficed blog generates in ad fees? I can't imagine it's more than a grand or two per month, can you?
What we are about to see, imo, is that:
a.) The vast majority of the homedebtor bodies that wash up during the coming mass drowning will be in young Casey's cohort.
b.) The vast majority of business fall-out will be of the nature of the recent Ownit collapse - they get force fed too many e-coli tranches, X thousand lay-offs (most of whom are Casey's age), another pure mortgage broker is flushed down the crapper, and NOBODY CARES. Nobody except Wells, Countrywide, etc. who are only too happy to step in and fill the void as they are doing now.
One thing that is most definitely "different" this time is that mortgage default risk is spread like never before in the history of man. The last crash is like yesterday to oldsters like you and me. Think about it: Last time, a lending institution (they were primarily S&L's) closing it's doors and laying off 1,000 people would have been a nationaly covered catastrophe. This time NOBODY CARES because the only real fall-out is employment related and not financial due to risk disapation. And the employment concern is zilch when the only people getting zipped are gen y'rs and the wider economy is at essentially full employment.
Inventory rises to 6 or 8 months supply? NOBODY CARES.
Sales Volume drops 25%? NOBODY CARES.
Prices drop 10% in hot markets like SB, VenCo, Vegas? NOBODY CARES?
The past market was white hot, and all of the above WILL occur during a transition to either a "normal" market or the next crash. The only unanswered question is if a crash will occur during:
1.) Full employment.
2.) Low interest rates.
3.) Loose lending.
4.) Massive global liquidity.
It sure is interesting to watch, and I am both glad the outcome won't effect me one way or another, and sad to see that WHATEVER happens will create hardship for millions of young Americans.
Cheers Robert!
I am a mortgage broker and am doing great. Ownit was subprime, which has a different dyanmic than A paper.
Also, anonymous is right. As a broker, the borrower closes in the name of the lender I pick for them.
However, there are some brokers that will close in their own name, so as not to disclose the yield spread premium(which shows the borrower how much they were raping them for).
That's how the "brokers" got into trouble when they signed repurchase agreements.
Lyon Jewett
T
NIce Zelazny reference Robert Cote, or is it Corwin?
Anon 5:42 (aka Lyon),
The originator may be obligated to repurchase the bad paper even if they were only a conduit. Every permutation is possible. I'm merely providing examples. You even acknowledge that some brokers close in their own name. Still , name on the loan or not, as originator they almost always have buyback provisions.
Metro;
It disheartened me to see how few got the reference. Why hasn't some smart studio picked up the rights for 3 movies? Harry Potter for adults. Rated-R for violence and se|?ual content. As to "Corwin." Yes, there's a little there but think about it. Can we manipulate the shadows? I like to think we can. Else why blog?
I have not touched thos books in 25 years, too bad summer is over.
I agree it would make a killing but the PG-13 rating would be hard to get with all the relations. But with the CGI they have today, it would make the movie look better than it ever could have before. As long as Lucas never gets his hands on it, we can be assured no teddybear picnic endings.
Forgot to mention PG-13 has the broadest audience and so when a studio parks its nut in one of these blockbusters they want maximum return.
Who wants a bubblegum version? I want the whole millieu, the nurse at the beginning with the big gazongas, the fratracide, the patracide, the sorta incest, gorey fight battles, etc. More like Blade. Maybe John Carpenter could direct.
I have a question: I bought a house in June 2006 in the middle of small-town Pennsylvania, as a place to live in for my family. It cost $175K. We are not intending it to be a source of income, I have a normal post-college-degree job, retirement plan, and so does my wife. We are both 30. Is this crash that you are all talking about as inevitable going to affect people like me, or is it more going to hurt the Casey Serin's out there who buy houses to make money?
not that he actually *made* any money, mind you...
ICUP,
Where you are at prices may have gone up a bit but not like coastal areas. Just look at the loan you have and how long you plan to live there and if your answer is a fixed rate loan and your job(s) are stable and you plan to be there 5-10 years, I would not sweat it. You look to me like you are doing fine.
The question that will get answered is the flip side of Metro's coin; did the bubble actually only happen on the coasts? Or did the "flyover" country just not decline ala Detroit and Buffalo? ICUP, you bought for a low price, for the right reasons with enough resources, you'll be fine.
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