[quote=bearishgurl]SK in CV, the lender I dealt with was a private lender with private investor-“partners” who primarily bought 2nds at a discount and made bridge loans to people to assist them in purchasing a property before they could qualify to buy it. He actually had several repeat customers that recommended his services to others needing it.
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I apologize if you thought I was disparaging you and your work. It was the industry itself. The model you describe was pretty standard. Investors buying entire loans, or fractionalized interests in the loans. Sometimes properly recorded, sometimes not. Sometimes the lenders had the proper licenses to sell securities, sometimes not. The borrowers in deep trouble. Costs were rarely under 10 pts, often much higher. 2 to 4 year, interest only loans at high rates, usually 5-7% or so more than conventional rates. All sorts of bad things happened. Loans got oversold. Loans were re-upped, in a falling market with new points just added on. In-house appraisals said whatever the lender wanted them to say. By ’94 just about every one of them were either in trouble or out of business. Great business to be in, in a rising market. But since wall street got into subprime lending, it was pretty much non-existent over the last 6 years.
