Comments on: Why again, are Lenders going out of business? http://www.socalbubble.com/2007/07/why-again-are-lenders-going-out-of-business.html Southern California is Experiencing a Real Estate Bubble like never before Fri, 04 Feb 2011 01:16:46 -0700 hourly 1 http://wordpress.org/?v=3.1 By: elnara http://www.socalbubble.com/2007/07/why-again-are-lenders-going-out-of-business.html/comment-page-1#comment-44949 elnara Mon, 25 Feb 2008 13:53:58 +0000 http://www.socalbubble.com/2007/07/why-again-are-lenders-going-out-of-business.html#comment-44949 I am a student in economy university I am a student in economy university

]]> By: Henry Shao http://www.socalbubble.com/2007/07/why-again-are-lenders-going-out-of-business.html/comment-page-1#comment-8878 Henry Shao Mon, 09 Jul 2007 13:34:53 +0000 http://www.socalbubble.com/2007/07/why-again-are-lenders-going-out-of-business.html#comment-8878 I just published an article about Sherman Oaks real estate, in comparison to the Encino real estate market. It has lots of statistics of the key elements of those areas, such as $/sf, median days on market, etc. You may find the article at: http://realestateandhomes.blogspot.com/2007/07/comparing-sherman-oaks-real-estate-and.html Henry www.movoto.com I just published an article about Sherman Oaks real estate, in
comparison to the Encino real estate market. It has lots of statistics of the
key elements of those areas, such as $/sf, median days on market, etc.
You may find the article at:

http://realestateandhomes.blog.....e-and.html

Henry
http://www.movoto.com

]]> By: travanx http://www.socalbubble.com/2007/07/why-again-are-lenders-going-out-of-business.html/comment-page-1#comment-8867 travanx Mon, 09 Jul 2007 05:29:35 +0000 http://www.socalbubble.com/2007/07/why-again-are-lenders-going-out-of-business.html#comment-8867 I like to see when a couple of places go on the market at the same time and then notice most of them just sit for months while 1 or 2 sold within a week of being posted. So I think it helps normal buyers when looking at properties online. Now if I had to actually go hunting for a house/condo by driving around, that number would be much harder to make sense of. I automatically assume realtors don't do anything useful at this point. I like to see when a couple of places go on the market at the same time and then notice most of them just sit for months while 1 or 2 sold within a week of being posted. So I think it helps normal buyers when looking at properties online. Now if I had to actually go hunting for a house/condo by driving around, that number would be much harder to make sense of. I automatically assume realtors don’t do anything useful at this point.

]]> By: LAEF2 http://www.socalbubble.com/2007/07/why-again-are-lenders-going-out-of-business.html/comment-page-1#comment-8790 LAEF2 Sat, 07 Jul 2007 16:28:26 +0000 http://www.socalbubble.com/2007/07/why-again-are-lenders-going-out-of-business.html#comment-8790 About the original post Chuck, You could make the case that the buisness plan was bad and only worked in a rising market. So, perhaps the author was over polite "market turned against them" vs jacked up stupid buisness plan. About the original post Chuck,

You could make the case that the buisness plan was bad and only worked in a rising market.

So, perhaps the author was over polite “market turned against them” vs jacked up stupid buisness plan.

]]> By: tom gorman http://www.socalbubble.com/2007/07/why-again-are-lenders-going-out-of-business.html/comment-page-1#comment-8756 tom gorman Sat, 07 Jul 2007 03:56:47 +0000 http://www.socalbubble.com/2007/07/why-again-are-lenders-going-out-of-business.html#comment-8756 A comment above mentioned 911. Hey this 'bubble' created after 911 through the private 'Federal'(oxymoron) 'Reserve'(what reserve?) ended up being quite a diversion from the unresolved mysteries of 911. Huh? A comment above mentioned 911. Hey this ‘bubble’ created after 911 through the private ‘Federal’(oxymoron) ‘Reserve’(what reserve?) ended up being quite a diversion from the unresolved mysteries of 911. Huh?

]]> By: Nate http://www.socalbubble.com/2007/07/why-again-are-lenders-going-out-of-business.html/comment-page-1#comment-8687 Nate Thu, 05 Jul 2007 23:32:50 +0000 http://www.socalbubble.com/2007/07/why-again-are-lenders-going-out-of-business.html#comment-8687 Ummm... what difference does DOM really make? If the house is overpriced, it is overpriced on day 7 and on day 700, thus in my mind in this market DOM is irrelevent. There is no need really to know that information. Lots of houses are on the market for ages and there is nothing wrong with them in a stuck market like we have in the IE, so one cannot really discern anything useful from the DOM figure. Very few houses are selling, there is LOTS of inventory, AND loans are perhaps a little harder to come by. As a potential buyer, I don't really care how long the house is on the market. Does anyone see this differently? Ummm… what difference does DOM really make? If the house is overpriced, it is overpriced on day 7 and on day 700, thus in my mind in this market DOM is irrelevent. There is no need really to know that information. Lots of houses are on the market for ages and there is nothing wrong with them in a stuck market like we have in the IE, so one cannot really discern anything useful from the DOM figure. Very few houses are selling, there is LOTS of inventory, AND loans are perhaps a little harder to come by. As a potential buyer, I don’t really care how long the house is on the market. Does anyone see this differently?

]]> By: simi.uber.alles http://www.socalbubble.com/2007/07/why-again-are-lenders-going-out-of-business.html/comment-page-1#comment-8676 simi.uber.alles Thu, 05 Jul 2007 19:26:45 +0000 http://www.socalbubble.com/2007/07/why-again-are-lenders-going-out-of-business.html#comment-8676 <i>One view is that it hurts sellers, another is that it helps buyers.</i> Err.. aren't those really the same "view?" One view is that it hurts sellers, another is that it helps buyers.

Err.. aren’t those really the same “view?”

]]> By: unreal http://www.socalbubble.com/2007/07/why-again-are-lenders-going-out-of-business.html/comment-page-1#comment-8673 unreal Thu, 05 Jul 2007 18:36:01 +0000 http://www.socalbubble.com/2007/07/why-again-are-lenders-going-out-of-business.html#comment-8673 This is amazing: From: "SOCALMLS" (info@info.socalmls.com) Sent: Thursday, July 05, 2007 9:00 AM Subject: SoCalMLS - IMPORTANT TEMPO CHANGE DOM/CDOM No Longer In Client Reports With the changing market there has been much discussion, contention and even litigation over Days on Market and Cumulative Days on Market figures. One view is that it hurts sellers, another is that it helps buyers. The bottom line is that you, the real estate professional are in the best position to explain to your customer - buyer or seller - what the true DOM figure is and what it means. To that end, the SoCalMLS BOD, after getting input from MLS Committees and other practitioners, have decided to remove the DOM and CDOM fields from all Client reports. You will still have this information available to you in the Agent reports, which also link to the history report for each listing. The history report gives you a much more precise overview of what transpired for a particular listing. With that ammunition you should be prepared to better explain to your client the ramifications of the DOM data. If you have any questions as to how to access the history please feel free to give us a call... SoCalMLS This is amazing:

From: “SOCALMLS” (info@info.socalmls.com)
Sent: Thursday, July 05, 2007 9:00 AM
Subject: SoCalMLS – IMPORTANT TEMPO CHANGE

DOM/CDOM No Longer In Client Reports

With the changing market there has been much discussion, contention and even litigation over Days on Market and Cumulative Days on Market figures. One view is that it hurts sellers, another is that it helps buyers.

The bottom line is that you, the real estate professional are in the best position to explain to your customer – buyer or seller – what the true DOM figure is and what it means.

To that end, the SoCalMLS BOD, after getting input from MLS Committees and other practitioners, have decided to remove the DOM and CDOM fields from all Client reports. You will still have this information available to you in the Agent reports, which also link to the history report for each listing. The history report gives you a much more precise overview of what transpired for a particular listing. With that ammunition you should be prepared to better explain to your client the ramifications of the DOM data.

If you have any questions as to how to access the history please feel free to give us a call…

SoCalMLS

]]> By: Chris http://www.socalbubble.com/2007/07/why-again-are-lenders-going-out-of-business.html/comment-page-1#comment-8587 Chris Tue, 03 Jul 2007 23:55:37 +0000 http://www.socalbubble.com/2007/07/why-again-are-lenders-going-out-of-business.html#comment-8587 Chuck you are right I apologize. I didn't mention the buybacks but it's still true that they stopped purchasing the loans they made which on top of the buybacks sunk the ship, of course the buybacks were enough to do that on their own. You are right...my fault. Chuck you are right I apologize. I didn’t mention the buybacks but it’s still true that they stopped purchasing the loans they made which on top of the buybacks sunk the ship, of course the buybacks were enough to do that on their own. You are right…my fault.

]]> By: Chuck Ponzi http://www.socalbubble.com/2007/07/why-again-are-lenders-going-out-of-business.html/comment-page-1#comment-8575 Chuck Ponzi Tue, 03 Jul 2007 20:11:15 +0000 http://www.socalbubble.com/2007/07/why-again-are-lenders-going-out-of-business.html#comment-8575 Chris, You're mistaken. They did not go out of business due to not being able to do loans and slowly bleeding overhead, they went out of business because of buybacks... the same reason that New Century, Fremont, and scores of others went belly up. Hence, their creditors are IBs, not the landlord and the power company. Chuck Ponzi Chris,

You’re mistaken. They did not go out of business due to not being able to do loans and slowly bleeding overhead, they went out of business because of buybacks… the same reason that New Century, Fremont, and scores of others went belly up. Hence, their creditors are IBs, not the landlord and the power company.

Chuck Ponzi

]]> By: Chris http://www.socalbubble.com/2007/07/why-again-are-lenders-going-out-of-business.html/comment-page-1#comment-8572 Chris Tue, 03 Jul 2007 19:45:58 +0000 http://www.socalbubble.com/2007/07/why-again-are-lenders-going-out-of-business.html#comment-8572 Banks have gone bankrupt because they weren't loaning depositors money, they were loaning money that would be replenished to them after investors purchased the loan that they gave out. That being said, people say the market turned against them because investors stopped buying their loans. So yes, the market did turn against them. They may have had buyers lined up only to have them say no at the last minute...(which happened to a large bank that I work and I had a loan placed with them at the time) which would leave them with millions (or whatever loans they had accumulated since the last sale to investors) on their books with no cash replenished and BAM they are now bankrupt. The bank that I'm referring to had this happen to them back in March but have since adjusted their programs and guidelines and are now once again are able to sell their loans because they are more conservative in their loan to value requirements. You have banks with deep pockets who are staying afloat now because they don't necessarily HAVE to sell that loan right away to an investor. They can portfolio it since they are getting their cash from the bank that backs them or perhaps they ARE the bank. Those that depend on selling almost all their loans to the secondary market are having the toughest time. Banks have gone bankrupt because they weren’t loaning depositors money, they were loaning money that would be replenished to them after investors purchased the loan that they gave out. That being said, people say the market turned against them because investors stopped buying their loans. So yes, the market did turn against them.

They may have had buyers lined up only to have them say no at the last minute…(which happened to a large bank that I work and I had a loan placed with them at the time) which would leave them with millions (or whatever loans they had accumulated since the last sale to investors) on their books with no cash replenished and BAM they are now bankrupt. The bank that I’m referring to had this happen to them back in March but have since adjusted their programs and guidelines and are now once again are able to sell their loans because they are more conservative in their loan to value requirements.

You have banks with deep pockets who are staying afloat now because they don’t necessarily HAVE to sell that loan right away to an investor. They can portfolio it since they are getting their cash from the bank that backs them or perhaps they ARE the bank. Those that depend on selling almost all their loans to the secondary market are having the toughest time.

]]> By: simi.uber.alles http://www.socalbubble.com/2007/07/why-again-are-lenders-going-out-of-business.html/comment-page-1#comment-8566 simi.uber.alles Tue, 03 Jul 2007 19:14:25 +0000 http://www.socalbubble.com/2007/07/why-again-are-lenders-going-out-of-business.html#comment-8566 I've written my share of software over the years, and I can tell you this: If I were writing a "proprietary online loan-management system" to match up subprime loans with OPM, I'm pretty sure it wouldn't take "minutes" to determine whether it was a good risk or not. In fact, I think it could be done instantly if you dispensed with all that complicated asset and job verification, credit history and other financial voodoo. So it seems obvious to me that their failure was a direct result of their software platform. Probably a bunch of slackers in the engineering department. (sarcasm off) I’ve written my share of software over the years, and I can tell you this: If I were writing a “proprietary online loan-management system” to match up subprime loans with OPM, I’m pretty sure it wouldn’t take “minutes” to determine whether it was a good risk or not. In fact, I think it could be done instantly if you dispensed with all that complicated asset and job verification, credit history and other financial voodoo. So it seems obvious to me that their failure was a direct result of their software platform. Probably a bunch of slackers in the engineering department.

(sarcasm off)

]]> By: Allens friend http://www.socalbubble.com/2007/07/why-again-are-lenders-going-out-of-business.html/comment-page-1#comment-8561 Allens friend Tue, 03 Jul 2007 18:34:24 +0000 http://www.socalbubble.com/2007/07/why-again-are-lenders-going-out-of-business.html#comment-8561 If you think back a couple of years a small event happened that may have escaped everybodies notice. It was called 9-11 in all the press releases. The economy took a major dive and Mr greenspan had to come up with a quick plan to keep the country moving or we would be in the provebial crapper. Lets drop the iterest rate so low that everybody can afford a big house and live like kings. That way nobody will notice that we are really screwed! You are now paying for that policy by slowly raising interest rates and house prices that are out of site. Look at Japans housing prices from the late early 80's until the early 90's. Hmmm, see how they went from flat to spike and then to flat again. Back to same price as in early 80's. Fast forward ahead to US in early 2000's look ahead to 2010 and see housing prices at some level as pre-9/11. make plans accordingly! If you think back a couple of years a small event happened that may have escaped everybodies notice.
It was called 9-11 in all the press releases.
The economy took a major dive and Mr greenspan had to come up with a quick plan to keep the country moving or we would be in the provebial crapper.
Lets drop the iterest rate so low that everybody can afford a big house and live like kings. That way nobody will notice that we are really screwed!
You are now paying for that policy by slowly raising interest rates and house prices that are out of site.
Look at Japans housing prices from the late early 80′s until the early 90′s.
Hmmm, see how they went from flat to spike and then to flat again. Back to same price as in early 80′s. Fast forward ahead to US in early 2000′s look ahead to 2010 and see housing prices at some level as pre-9/11.
make plans accordingly!

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