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velecico
2189 Posts |
 Posted - 03/26/2008 : 3:00:27 PM
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| AT NJMBA convention last week a few FHA guys were saying Mozillo is negotiating a new deal , were he will form a new company that will do loans similar to FHA , they will concentrate on just refinances where the present loan is an ARM or 80/20 , property has lost equity but the owners still have a perfect mortgage history , they would just streamline it to a fix rate without income qualification |
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pablin_2005
684 Posts |
Posted - 03/26/2008 : 3:02:20 PM
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| that's some great stuff! I wonder if they will let brokers do these if it goes through |
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mantixmortgage
2024 Posts |
Posted - 03/26/2008 : 4:15:39 PM
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| im down with that idea |
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rtrefflich
1720 Posts |
Posted - 03/26/2008 : 4:17:49 PM
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This is a great idea, but Mozillo should be in jail for insider trading violations at the least. He dropped all of his CW stock, then it just so happened to drop, then he, along with the rest of CW sold MBS on wall street saying they were A paper when they were mixed in with everything. Hopefully he will do this business from the back of a jail cell
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808
1198 Posts |
Posted - 03/26/2008 : 4:23:17 PM
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| that's sounds like a retail, fees capped at 1-2% type thing, Mozilo keeps the SRP. That's the only way the secondary mkt and or the Feds will probably open up to this idea. Home prices are still dropping like a rock. They'll definitely have people lined up around the block to do it though, espc if they'll do Opt Arms as well. |
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mortgagemessiah
6549 Posts |
Posted - 03/26/2008 : 4:54:24 PM
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| Yeah he'll be back like a herpes outbreak. |
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darkstar
13777 Posts |
Posted - 03/26/2008 : 5:54:19 PM
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quote:
Originally posted by mortgagemessiah
Yeah he'll be back like a herpes outbreak.
Yup >>>without income qualification Right back where we were.... |
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velecico
2189 Posts |
Posted - 03/26/2008 : 8:39:57 PM
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quote:
Originally posted by darkstar
quote:
Originally posted by mortgagemessiah
Yeah he'll be back like a herpes outbreak.
Yup >>>without income qualification Right back where we were....
Why do you say that ? if someone got into a home 2 years ago , without income qualification and they are paying on time , no lates , 24 month history lets say , whats the problem in doing the deal ? many folks have under the table money , or pool income , I deal with many Asian and Middle Eastern , Hispanic homeowners , 2-3 families live in a home due to the high cost , plus they get rental income . North Jersey a triplex goes for 600K easy , these folks did not buy to flip or inpress , they bought to have a roof and be part of the dream , they pay on time , if it means eating rice and beans 4 out of 7 days , some have 80/20s with rates as high as 14% on the second , you try to take them FHA with the new loan limits but the back ratio is over 100 LOL , believe me .if its not Mozillo someone is already thinking of a MBS that will fit this pool , as long as you have it owner occupied and a solid past payment history you just rate and term it to give them a better deal , charge a premium upfront MI to offsett the risk make the rate 1/2 to 1 pt over the Fannie Mae 60 day delivery price and you have a performing assett on your books for the next 7-10 years |
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neversaynever
769 Posts |
Posted - 03/26/2008 : 8:44:36 PM
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| Good question OP, I did some research and called his secretary, only to find out he's sleeping in his tanning bed capsule for the next week, but he will return |
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hherrm
1200 Posts |
Posted - 03/26/2008 : 8:55:08 PM
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I think that this is an excellent idea. Basically, show me that you made your payment on time for the last 24 months and I will give you a break, no questions asked.
There are many out there that have income that can not be documented, but it is there, just like Nick pointed out.
Forget about the bailout for all the people that are just waiting for a handout. If you went in over your head just to impress the neighbors, face it, you have to pay the price. |
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rtrefflich
1720 Posts |
Posted - 03/26/2008 : 9:55:18 PM
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| I have no problem with the idea, in fact I have said for about 8 months that if banks were to do something like this they would not only make a lot of money, they wouldn't continue to lose the tons that they have already lost, the problem I have with it is that it is Mozillo doing it, he should be banned from lending alltogether for the disaster that he helped cause. |
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khoiey
887 Posts |
Posted - 03/26/2008 : 10:02:10 PM
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Why is Mozillo should be the only one to hang? Man he is just a pawn of Wall Street and we are just lil minions.
quote:
Originally posted by rtrefflich
I have no problem with the idea, in fact I have said for about 8 months that if banks were to do something like this they would not only make a lot of money, they wouldn't continue to lose the tons that they have already lost, the problem I have with it is that it is Mozillo doing it, he should be banned from lending alltogether for the disaster that he helped cause.
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hherrm
1200 Posts |
Posted - 03/26/2008 : 10:02:44 PM
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| I do get your point about Mozillo, but, have you ever thought about that he may have just went with the flow like most of us had. He just produced what the bigger guys asked for at the time (Wall Street), just as we produced what the lenders asked for. |
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mortgagemessiah
6549 Posts |
Posted - 03/26/2008 : 10:10:09 PM
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| Mozillo was one of the architects of this whole thing. |
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hherrm
1200 Posts |
Posted - 03/26/2008 : 10:12:48 PM
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quote:
Originally posted by mortgagemessiah
Mozillo was one of the architects of this whole thing.
Do you have any proof of that? |
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1stintegritymort
1165 Posts |
Posted - 03/27/2008 : 05:23:55 AM
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| streamline their loan similar to FHA? in otherwords, he is going to do loan modifications just like the other Executive from CW starting PennyMac. why would other lenders modify their loans for these crooks and not for anyone else? it doesnt make any sense. what pull do they have? how can the lenders modify loans for them and not for us? no one is going to insure these loans anyway. they would have to be portfolio loans. he will need investors to put up billions. i normally dont like to see other people fail, but i hope his plan does. he doesnt deserve to be in the business after what he did. talk about fraud and trying to get rid of the poison in our industry. when CW is taken over he should not be allowed to be involved in any mortgage company. he needs to be exhiled. atleast the other Executive who is starting PennyMac left BEFORE all this happened. i actually have some respect for him since he probably knew what was going on and just kept him mouth shut with some sort of agreement they made him sign... like a gag order more or less. Mozillo may not have comitted the fraud himself, but there is no way you can say he had no idea what was going on and what the consequences were. why do you think he sold his stock right before it collapsed? you really think thats a coincidence? you dont think he knew the delinquency and default rates? or how many POA's were now over equity? they lied about their books. they were hiding losses. do you think he didnt know about that either? he was in charge of their operation. how can anyone say he was blinded by what was going on? he is held accoutable for their business. he is the CEO of their company. everything rests on his shoulders. any other lender would have fired him and brought in a new CEO. why is he still there? he was founder of the company was he not? |
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shaslam
272 Posts |
Posted - 03/27/2008 : 07:51:47 AM
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He's not going to just modify loans Intergrity, these are going to be refi deals. The current notes can't be changed all willy-nilly. The old note will be paid off.
The real challenge of course, is finding a pool of investors to buy the paper on the new loans. Good luck with that Angello!! |
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rtrefflich
1720 Posts |
Posted - 03/27/2008 : 08:56:48 AM
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It's his challenges with the SEC for selling his stock and making millions knowing that his company was going down and they were selling and originating crap. I understand the philosophy of buy low, sell high, but if you are the CEO of a corp, or anyone in the corp. for that matter and you know that the corporation is going to go bad it is ILLEGAL to sell your stock with that information. I have a buddy who works for a huge company and before 4th quarter reports came out they received a memo saying that if they sold any of their stock it would be illegal.
quote:
Originally posted by hherrm
I do get your point about Mozillo, but, have you ever thought about that he may have just went with the flow like most of us had. He just produced what the bigger guys asked for at the time (Wall Street), just as we produced what the lenders asked for.
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1stintegritymort
1165 Posts |
Posted - 03/27/2008 : 09:05:30 AM
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quote:
Originally posted by shaslam
He's not going to just modify loans Intergrity, these are going to be refi deals. The current notes can't be changed all willy-nilly. The old note will be paid off.
The real challenge of course, is finding a pool of investors to buy the paper on the new loans. Good luck with that Angello!!
sure they would refinance them after they modify the loan with a short payoff. this is the same thing PennyMac is proposing to do. its not going to be as easy as they think. why wouldnt their current lender reduce the prinicpal balance themselves so they dont take the entire loss? they would be much better off reducing the balance and servicing the loan so they can atleast make some of their money back. |
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mudshark
3660 Posts |
Posted - 03/27/2008 : 3:29:39 PM
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None of you are quite getting it. Out of the 80/20 subprime pools it is estimated that 20% was originated from CW and it's correspondents. By taking the 85% performing from the pool into a streamline with a new co., the old notes are eliminated from the CW books and the new performing note goes to the new entity.
Of course this will be limited to CW owned notes. Cw retains it's value stopping further hammering from BofA. UW will be instructed to implode any New Cents., Option Ones, etc. until they can buy the entire pool at 45 and do the same for the 75-80% of the pool performing. Option arms can be moved into the same with the overage converting to personal lines of credit.
This is a cya move to keep the portfolio performing and not getting too top heavy with reo/nod's. Others will follow this business model to cover themselves as well. |
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neo-logic
365 Posts |
Posted - 03/27/2008 : 3:56:22 PM
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I'm down for brokers being able to get apiece of this pie.
And why are we still on his back for insider trading? I believe it's innocent until proven guilty, not the other way around. And as far as we know, his sells were pre-ordered. The guy takes a company from zero to hero and can't make a couple million? |
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rtrefflich
1720 Posts |
Posted - 03/27/2008 : 4:23:03 PM
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There's nothing wrong with taking the company from zero to hero, it's my dream, it is when you make your millions and the rest of the company goes back down to zero again is when I have a problem.
quote:
Originally posted by neo-logic
I'm down for brokers being able to get apiece of this pie.
And why are we still on his back for insider trading? I believe it's innocent until proven guilty, not the other way around. And as far as we know, his sells were pre-ordered. The guy takes a company from zero to hero and can't make a couple million?
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