[SK in CV]

[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.

[/quote]

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.

[SK in CV]

[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.

[/quote]

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.

[SK in CV]

[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.

[/quote]

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.

[SK in CV]

[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.

[/quote]

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.

[SK in CV]

[quote=bearishgurl]
I guess you could have called me one of those “intermediaries.” In the early eighties, I did this “legwork” for a “respected” C, D paper-lender located in Mission Valley….[/quote]

Really? There was such a thing? Ok, maybe there was, but it was a slimy industry back then. Who knew the big boys were gonna get into it? I worked half a dozen bankruptcies in the late 80’s/early 90’s for hard money lenders, including one that I believe is still the biggest swindle in local history (dwarfs J David). Even though nobody really ended up stealing any serious money, just losing it. Lotta money to be made, on all different sides of the business. But if you don’t know what you’re doing, a whole lot of money to be lost too.

[SK in CV]

[quote=bearishgurl]
I guess you could have called me one of those “intermediaries.” In the early eighties, I did this “legwork” for a “respected” C, D paper-lender located in Mission Valley….[/quote]

Really? There was such a thing? Ok, maybe there was, but it was a slimy industry back then. Who knew the big boys were gonna get into it? I worked half a dozen bankruptcies in the late 80’s/early 90’s for hard money lenders, including one that I believe is still the biggest swindle in local history (dwarfs J David). Even though nobody really ended up stealing any serious money, just losing it. Lotta money to be made, on all different sides of the business. But if you don’t know what you’re doing, a whole lot of money to be lost too.

[SK in CV]

[quote=bearishgurl]
I guess you could have called me one of those “intermediaries.” In the early eighties, I did this “legwork” for a “respected” C, D paper-lender located in Mission Valley….[/quote]

Really? There was such a thing? Ok, maybe there was, but it was a slimy industry back then. Who knew the big boys were gonna get into it? I worked half a dozen bankruptcies in the late 80’s/early 90’s for hard money lenders, including one that I believe is still the biggest swindle in local history (dwarfs J David). Even though nobody really ended up stealing any serious money, just losing it. Lotta money to be made, on all different sides of the business. But if you don’t know what you’re doing, a whole lot of money to be lost too.

[SK in CV]

[quote=bearishgurl]
I guess you could have called me one of those “intermediaries.” In the early eighties, I did this “legwork” for a “respected” C, D paper-lender located in Mission Valley….[/quote]

Really? There was such a thing? Ok, maybe there was, but it was a slimy industry back then. Who knew the big boys were gonna get into it? I worked half a dozen bankruptcies in the late 80’s/early 90’s for hard money lenders, including one that I believe is still the biggest swindle in local history (dwarfs J David). Even though nobody really ended up stealing any serious money, just losing it. Lotta money to be made, on all different sides of the business. But if you don’t know what you’re doing, a whole lot of money to be lost too.

[SK in CV]

[quote=bearishgurl]
I guess you could have called me one of those “intermediaries.” In the early eighties, I did this “legwork” for a “respected” C, D paper-lender located in Mission Valley….[/quote]

Really? There was such a thing? Ok, maybe there was, but it was a slimy industry back then. Who knew the big boys were gonna get into it? I worked half a dozen bankruptcies in the late 80’s/early 90’s for hard money lenders, including one that I believe is still the biggest swindle in local history (dwarfs J David). Even though nobody really ended up stealing any serious money, just losing it. Lotta money to be made, on all different sides of the business. But if you don’t know what you’re doing, a whole lot of money to be lost too.

[SK in CV]

[quote=Veritas]IOUSA How’s that hope and change working for you Obamanites now? “WASHINGTON — The chairman of the Federal Reserve, Ben S. Bernanke, warned on Wednesday that “the federal budget appears to be on an unsustainable path,” but also recognized that the “exceptional increase” in the deficit had been necessary to ease the recession.”

P.S. Go ahead and blame Bush.[/quote]

I will.

I do.

Along with the congress which approved his budgets, which built a much larger piece of the federal deficit than any administration before him, and, at least for the moment, since.

[SK in CV]

[quote=Veritas]IOUSA How’s that hope and change working for you Obamanites now? “WASHINGTON — The chairman of the Federal Reserve, Ben S. Bernanke, warned on Wednesday that “the federal budget appears to be on an unsustainable path,” but also recognized that the “exceptional increase” in the deficit had been necessary to ease the recession.”

P.S. Go ahead and blame Bush.[/quote]

I will.

I do.

Along with the congress which approved his budgets, which built a much larger piece of the federal deficit than any administration before him, and, at least for the moment, since.

[SK in CV]

[quote=Veritas]IOUSA How’s that hope and change working for you Obamanites now? “WASHINGTON — The chairman of the Federal Reserve, Ben S. Bernanke, warned on Wednesday that “the federal budget appears to be on an unsustainable path,” but also recognized that the “exceptional increase” in the deficit had been necessary to ease the recession.”

P.S. Go ahead and blame Bush.[/quote]

I will.

I do.

Along with the congress which approved his budgets, which built a much larger piece of the federal deficit than any administration before him, and, at least for the moment, since.

[SK in CV]

[quote=Veritas]IOUSA How’s that hope and change working for you Obamanites now? “WASHINGTON — The chairman of the Federal Reserve, Ben S. Bernanke, warned on Wednesday that “the federal budget appears to be on an unsustainable path,” but also recognized that the “exceptional increase” in the deficit had been necessary to ease the recession.”

P.S. Go ahead and blame Bush.[/quote]

I will.

I do.

Along with the congress which approved his budgets, which built a much larger piece of the federal deficit than any administration before him, and, at least for the moment, since.

[SK in CV]

[quote=Veritas]IOUSA How’s that hope and change working for you Obamanites now? “WASHINGTON — The chairman of the Federal Reserve, Ben S. Bernanke, warned on Wednesday that “the federal budget appears to be on an unsustainable path,” but also recognized that the “exceptional increase” in the deficit had been necessary to ease the recession.”

P.S. Go ahead and blame Bush.[/quote]

I will.

I do.

Along with the congress which approved his budgets, which built a much larger piece of the federal deficit than any administration before him, and, at least for the moment, since.

[SK in CV]

I’m going to focus on just one little piece of this comment.

[quote=aldante] Meanwhile the “anti fed” crowd – Ron Paul, Peter Schiff, Marc Faber had been telling us for years that we were in a massive bubble and more importantly why we were in the bubble. [/quote]

All 3 are anti-fed. And Ron Paul did kind of predict the bubble. Though it started at the very early stages of the bubble, so early that it could be argued that when he began making the claim, the bubble didn’t even exist.. But he was dead wrong as to why the bubble was going to happen. He claimed it was all the GSE’s, while the facts are pretty clear (despite the fact that the claims continue to be made) that the GSE’s had virtually nothing to do with the bubble. I suspect that he continues to argue that the point is to support his own bona fides. The facts, however, don’t support either his prediction or his current claims.

[Author]

Posts