Real Men of Genius: Mortgage Broker Mike Railey

[davelj]

You gotta give the guy some credit, however, for munching on his own cooking. First, he took on a funky neg-am loan, despite presumably understanding how it worked. (God only knows how many of his clients were put in the same type of loan.) Next, he speculated by buying a huge, presumably unaffordable piece of real estate. (God knows how many of his clients were “helped” by him into loans on their own huge unaffordable speculations.) For a guy that probably unwittingly assisted others in unknowingly hobbling their financial futures, at least he had the decency to follow the same path. So here’s to you, real man of genius.

[davelj]

You gotta give the guy some credit, however, for munching on his own cooking. First, he took on a funky neg-am loan, despite presumably understanding how it worked. (God only knows how many of his clients were put in the same type of loan.) Next, he speculated by buying a huge, presumably unaffordable piece of real estate. (God knows how many of his clients were “helped” by him into loans on their own huge unaffordable speculations.) For a guy that probably unwittingly assisted others in unknowingly hobbling their financial futures, at least he had the decency to follow the same path. So here’s to you, real man of genius.

[JWM in SD]

Clownifornian Personified.

[JWM in SD]

Clownifornian Personified.

[Diego Mamani]

Let’s make a note of the reporter name and in our calendars, so that we can check on this “genius” every six months or so. The reporter probably doesn’t know it, but this story has lots of potential!

I feel sorry for Mike’s family, but I hope the experience will help his son grow to become a frugal person.

[Diego Mamani]

Let’s make a note of the reporter name and in our calendars, so that we can check on this “genius” every six months or so. The reporter probably doesn’t know it, but this story has lots of potential!

I feel sorry for Mike’s family, but I hope the experience will help his son grow to become a frugal person.

[betting on fall]

I was amazed reading this- if I had made some clearly dumb financial moves, would I let it be published in the paper- complete with a picture of my wife and kid?

And I suspect that the cost of that condo is more than $6100 a month. Property tax is at least $1300, HOA at least $800, plus insurance.
So less than $4000 a month left to pay the mortgage on a $1.4m place at current jumbo loan rates? No way, unless its a truly funky option arm, but I didn’t think they still wrote those. Or he made a major downpayment which-sadly- is at risk.

I wish the guy luck for his family’s sake, but I just don’t see any way this will work out for him.

[betting on fall]

I was amazed reading this- if I had made some clearly dumb financial moves, would I let it be published in the paper- complete with a picture of my wife and kid?

And I suspect that the cost of that condo is more than $6100 a month. Property tax is at least $1300, HOA at least $800, plus insurance.
So less than $4000 a month left to pay the mortgage on a $1.4m place at current jumbo loan rates? No way, unless its a truly funky option arm, but I didn’t think they still wrote those. Or he made a major downpayment which-sadly- is at risk.

I wish the guy luck for his family’s sake, but I just don’t see any way this will work out for him.

[JWM in SD]

Sorry, but I don’t wish him any luck at all. Idiots like him need to be washed out of the system completely so that it can normalize again and have a modicum of rationality once more. Yes, it’s harsh, but business is like war, you have to play to win and you have to play smart. Survival at times is as important as gaining market share…if you don’t survive, then you cannot win later on.

[JWM in SD]

Sorry, but I don’t wish him any luck at all. Idiots like him need to be washed out of the system completely so that it can normalize again and have a modicum of rationality once more. Yes, it’s harsh, but business is like war, you have to play to win and you have to play smart. Survival at times is as important as gaining market share…if you don’t survive, then you cannot win later on.

[patientlywaiting]

I’m with you betting on fall.
I don’t know how he came up with $6100/mo carrying cost.

Purchase Price 1,400,000
Down Payment –
Loan Amount 1,400,000
Interest Rate 7.00%

Monthly Interest 8,167
Prop Tax Rate 1.20%
Prop Tax 1,400
HOA 800
Insurance 100
Maintenance 100

Total 10,567

I don’t feel sorry for this guy and his family in the least. They completely deserve what’s coming to them.

[patientlywaiting]

I’m with you betting on fall.
I don’t know how he came up with $6100/mo carrying cost.

Purchase Price 1,400,000
Down Payment –
Loan Amount 1,400,000
Interest Rate 7.00%

Monthly Interest 8,167
Prop Tax Rate 1.20%
Prop Tax 1,400
HOA 800
Insurance 100
Maintenance 100

Total 10,567

I don’t feel sorry for this guy and his family in the least. They completely deserve what’s coming to them.

[patientlywaiting]

I’m with you betting on fall.
I don’t know how he came up with $6100/mo carrying cost.

Purchase Price 1,400,000
Down Payment –
Loan Amount 1,400,000
Interest Rate 7.00%

Monthly Interest 8,167
Prop Tax Rate 1.20%
Prop Tax 1,400
HOA 800
Insurance 100
Maintenance 100

Total 10,567

I don’t feel sorry for this guy and his family in the least. They completely deserve what’s coming to them.

[(former)FormerSanDiegan]

I’m with you betting on fall.
I don’t know how he came up with $6100/mo carrying cost.

He said he had a 15% deposit. Assuming that’s his down payment, I come up with about a 4% payment to make it come out to 6100 per month. Assuming 1.125% prop tax and ignoring maintenance.

4% would imply that he has a neg-am option ARM or some other crap, that I thought no longer existed.

[(former)FormerSanDiegan]

I’m with you betting on fall.
I don’t know how he came up with $6100/mo carrying cost.

He said he had a 15% deposit. Assuming that’s his down payment, I come up with about a 4% payment to make it come out to 6100 per month. Assuming 1.125% prop tax and ignoring maintenance.

4% would imply that he has a neg-am option ARM or some other crap, that I thought no longer existed.

[Author]

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