Ground Floor Observations on Construction and Local Banks

[Bugs]

Great explanation. If Rich had emoticons on this board I’d be looking for the one that applauds.

What really gets me is the perception out there that the commercial markets are somehow more stable or even disconnected from the residential markets. Idiots.

[HereWeGo]

I think I’d want an emoticon where my jaw bounces off the floor. I had no idea underwriting collapsed in the CRE realm.

[HereWeGo]

I think I’d want an emoticon where my jaw bounces off the floor. I had no idea underwriting collapsed in the CRE realm.

[patientlywaiting]

Bugs, you made an interesting point when you said “I don’t have to worry about the federal banking regulators associating my name with those bad deals.”

As we all know, appraisers were key in making deals happen.

I wonder if lenders are developing risk management systems to better underwrite future loans so they can identify deals from realtors, brokers, appraisers, and mortgage brokers, whose transactions consistently go in default.

We rate our schools, teachers and principals by graduation rates; so why not rate the people who initiate real estate transactions the same way by?

The US government uses software to track down terrorists and you’re guilty by association.

Could the FBI not track down the fraudsters the same way? For example if 90% of a Realtor’s transactions end up in foreclosure, that should immediate raise a red flag. By triangulating, law enforcement could easily identify the people who facilitated fraud and put them jail.

If anything, Banks should develop internal risk management systems so they can avoid writing loans on transactions initated by “at risk” individuals.

[patientlywaiting]

Bugs, you made an interesting point when you said “I don’t have to worry about the federal banking regulators associating my name with those bad deals.”

As we all know, appraisers were key in making deals happen.

I wonder if lenders are developing risk management systems to better underwrite future loans so they can identify deals from realtors, brokers, appraisers, and mortgage brokers, whose transactions consistently go in default.

We rate our schools, teachers and principals by graduation rates; so why not rate the people who initiate real estate transactions the same way by?

The US government uses software to track down terrorists and you’re guilty by association.

Could the FBI not track down the fraudsters the same way? For example if 90% of a Realtor’s transactions end up in foreclosure, that should immediate raise a red flag. By triangulating, law enforcement could easily identify the people who facilitated fraud and put them jail.

If anything, Banks should develop internal risk management systems so they can avoid writing loans on transactions initated by “at risk” individuals.

[Bugs]

The way I see it we’re in the information age and I’m a vendor in the information business. I’ve always operated off the assumption that these bankers and these regulators can and will develop those types of analyses when it suits them to do so. If/when that happens they’re going to have a long memory, and I don’t want to be part of bad memories at the institutional level.

[Bugs]

The way I see it we’re in the information age and I’m a vendor in the information business. I’ve always operated off the assumption that these bankers and these regulators can and will develop those types of analyses when it suits them to do so. If/when that happens they’re going to have a long memory, and I don’t want to be part of bad memories at the institutional level.

[Author]

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