|
Based
upon our calculations, this month marks the two
year anniversary since this current industry
correction cycle began and the 'easy money' one
ended (it had started August 1998). You'll
remember that last one, that was the one where
even a monkey would earn a six figure annual
income, because lenders recklessly 'gave
money away' to borrowers (of course it
wasn't their $$$) and everyone got a piece of it
(from the securitization sources). Today
however, during this punishment phase of
this new cycle we're all in right now, those
secutritizers, many of their investors, several
of their insurers, lots of wall street
big-shots, most (middle-man) lenders, and a
great many borrowers are all having to pay it
back one way or another!
The sorta good news now, is that you more than
likely are not being compelled to do that same
thing, and if this cycle is as short as the last
one - only seven years in length vs. more
typically 10 years like the two before that,
then all we gotta do is hold out 5 more years as
this current group of industry employed people
get a taste of what the business really is like
... hard work ... not an easy money tree to
simply shake! Whoppie.
Far as more good news, for all of the friends of
Secret! University, (no matter what your
industry job is) we offer up two central areas
for you to focus on as you move through this
difficult period, and want to have a long
multi-year career afterwards:
1). Ethics: More than anything
else - this issue is critical for you to be able
to stay in business over time. Your behavior
needs to be bulletproof and above reproach;
remember what it means ... Ethical behavior is
what you do when nobody is watching <--
that's the real measuring stick!
2). Credibility: Generally
speaking, credibility results from evaluating
multiple dimensions simultaneously; most of
researchers identify "trustworthiness"
and "expertise" as the two main
components of credibility. At the same time,
it's important to differentiate between trust,
which is related more to
"dependability" and credibility, which
is connected to the idea of
"believability".
Over the years, I have been invited to speak at
many local, regional, and national conferences
and conventions – about a wide range of topics
having to do with the mortgage lending industry.
One reason for that, is simply due to the fact
that I've been kicking around this industry
since 1966 as a subprime mortgage broker/banker
(and lately as a Mentor/teacher) – after a
while "things" rub off on you, and you
pick up a bit of knowledge and understanding
here and there. Maybe I'm sharper than a lot of
people, have learned from my own numerous
mistakes, or … maybe I'm just older that's
all. But, take it from me ETHICS &
CREDIBILITY are what matters.
Register
then post your views here on our Discussion
Board
Freddie Predicts 'Credit Costs' of $16
Billion
Freddie Mac officials, noting that they are
being "conservative" in their loss
estimates, on Tuesday forecasted $16.4 billion
in future "credit costs" to cover
writedowns but believe the actual loss
experience will be $10 billion to $12 billion.
Discussing its poor third quarter performance,
company officials predicted dismal fourth
quarter results as well. It also was hinted that
Freddie tried to obtain a regulatory waiver on
maintaining a 30% excess capital ratio but was
rejected by the Office of Federal Housing
Enterprise Oversight. All the bad news was not
what stock analysts wanted to hear. During the
conference call, company CEO and chairman
Richard Syron suggested that a preferred stock
offering to bolster its capital position was
imminent. CLICK
HERE if you want to give us your opinion on our
Discussion Board
Mortgage Reform and Anti-Predatory
Lending Act of 2007
Lots of dialogue and positioning going on over
this recently passed House Bill. Whether the
Senate will OK, it and then it becomes Law, well
... that's another subject. You should take the
time to carefully read it, I have now four (4)
different times; there's a lot of good for the
overall industry in it.
The many issues it addresses do need fixing; and
from what other industry advocates and I think -
either this or something close to this Bill will
become Federal Law soon. Give
us your two cents on our Discussion Board
Billions in Subprime Securities
Downgraded
Fitch Ratings announced it initiated a formal
review of collateralized debt obligations backed
entirely or partially by trust preferred
securities issued by real estate investment
trusts, homebuilders and residential mortgage
lending financial institutions. Among the
factors prompting the review were that the
credit profiles of many of these issuers
continue to decline. Subprime loss forecasting
assumptions Fitch updated to better capture
deteriorating performance reportedly led to
downgrades on hundreds of millions of dollars of
a number of deals from various issuers in 2005.
A number of scratch and dent mortgage-backed
deals reportedly received lower ratings by
Moody's Investors Service on certain classes
because the proportion of severely delinquent
loans has been increasing while the amount of
available credit enhancement has been reduced
from losses and stepdown. Tells
us what you think about this on our Discussion
Board
MBS Investors Return to Market
Mortgage-backed securities investors shook free
of some of their liquidity concerns and staged a
notable return to the market Wednesday
afternoon. While the sector had given up some of
those gains as of Thursday morning, MBS
continued to trade relatively well. "We
didn't give it all back," Art Frank,
director and head of MBS research at Deutsche
Bank Securities Inc., said of the improvement in
the MBS market Nov. 28. "It was quite a
spectacular day." What
do you have to say about this? Sound off on our
Discussion Board
|
|
