Tuesday, March 25, 2008

Former Countrywide Execs Start New Mortgage Firm

Isn't this sort of like cigarette companies that get you hooked on nicotine and then sell you the patch? Former Countrywide executives, including the company's former president, have started a new company called PennyMac aimed at helping borrowers restructure loans so they can avoid foreclosure and maintain their payments. My guess: they've probably got some great leads from their past customer list.

Tuesday, March 18, 2008

The Cuts Just Keep On Coming


For the sixth time since August, the Fed has cut the benchmark lending rate, this time by 3/4%. The cut is a reaction to continued economic fears and the reluctance of some banks to lend to each other.

The Bear Isn't Looking So Bullish


Nearing a financial collapse, the once mighty investment bank Bear Stearns is being purchased by JPMorgan Chase for the paltry amount of $2 per share. And for the first time since the great depression, The Federal Reserve will provide special financing to JPMorgan Chase for the deal. The Fed agreed to fund up to $30 billion of Bear Stearns’ less liquid assets. Bear Stearns shares had once peeked at almost $160, but by Friday were down to $30 per share. What's most surprising about the quick fall of Bear Stearns, established in 1923, is that because it's an investment bank it has been generally detached from the issues affecting subprime lenders. The collapse of one of the world's largest and most historic investment banks would have large implications across the globe.

Saturday, March 15, 2008

Isn't This An Oxymoron?


Fortune Magazine's Top 10 most admired mortgage companies. This list is a real head shaker. Every company listed is either in major debt, teetering on bankruptcy, or embroiled in scandal and lawsuits past and present. What's next? Top 10 most loved tax auditors?

Great write up on the Truth About Mortgage blog.

Thursday, March 13, 2008

26 & Counting

February foreclosures were up 60% nationally over February of last year, the 26th consecutive month with a year-over-year increase.


Also, mortgage rates climbed again this week, the fourth time in the last five weeks.

Wednesday, March 12, 2008

Federal Reserve To Infuse $200 Billion Into Credit Markets

For the first time ever, the Federal Reserve announced it will offer to swap up to $200 Billion in U.S. Treasury securities in exchange for other debts including mortgage-backed securities. The program is being coordinated with central banks in Europe and Canada, which plan to inject up to $45 billion into their banking systems. The move is being done in an effort to show the world's lenders it has faith in the highest quality debt. The plan has received a positive reception from many analysts, and the stock market responded with its best day in five years.

Monday, March 10, 2008

FBI And Justice Department Investigate Countrywide


Countrywide just can't seem to stay out of the news. Now the Wall Street Journal reports that the lending giant is being investigated for misrepresenting its financial position as well as the quality of its mortgage loans. In addition, Countrywide CEO Angelo Mozilo was one of three mortgage industry executives brought in front of a Congressional committee on Friday to answer questions regarding their exorbitant pay. The company continues to pile up heavy losses. $1.2 billion in the third quarter of 2007 and $422 million in the fourth quarter of 2007. The company's stock fell 80% between February and December of 2007.


Hmm. Do you think Bank Of America might be feeling a little buyer's remorse right about now?

Thursday, March 6, 2008

This Is Getting To Be A Broken Record


The last quarter of 2007 proved to be more of the same as foreclosures hit an all time high and delinquencies reached their highest level in 23 years. And the MBA predicts more of the same for 2008.

Tuesday, March 4, 2008

Construction Spending Falls To Lowest Level In 14 Years


Down by 1.7% in January. Cutbacks included spending on residential projects, hotels, highways, & state and local government projects.

Sunday, March 2, 2008

Tag...I'm It

Okay, fine. A certain radical individual just challenged several of us blogger dudes and dudettes to a game of tag. List seven interesting things about myself, then ask seven more people to do the same. I don't usually like forwarding things like this to unsuspecting victims, but I'm willing to post it here. I'll get my revenge on little Miss Radical later (revenge is a dish best served cold). This isn't easy, as I don't think it's up to me to decide what's interesting about myself. So I'll just list them as seven things you don't know about me:

1. I once won a national cow chip throwing contest. I was the last person to throw, and managed to hurl a dried piece of cow turd over 50 yards (my secret: while everyone else threw their cow chip like a baseball, I found a flat piece and threw it like a Frisbee).

2. In 1984, I spent my summer vacation working as a security rover at the ABC studio in Hollywood during the L.A. Olympics. I escorted guests to the set for their on air interviews, and managed to meet every U.S. gold medal winner as well as many other celebrities.

3. As a teenager, I once came perilously close to drowning. I was trapped under large raft for several minutes and after I could no longer hold my breath I started to sink to the bottom of the lake. As I was sinking, I managed to grab the last rung of the raft's ladder and pull myself up. Even though I can remember it like it was yesterday, I've never been fearful of going back in the water. My favorite activity is scuba diving.

4. Until about four years ago, I suffered from severe insomnia. I just couldn't shut down my brain. I finally put a bed in my basement and slept downstairs so I couldn't see the sun coming up. I'm better now, and I actually sleep in a bedroom.

5. I held my first job at 12 years old, working three to four days a week during the summer for my father's lawn care business.

6. My father might be the only father to ever be disappointed that his son went to college. He wanted me to take over his lawn care business. I never wanted to see another lawn mower as long as I lived. He got over his disappointment, but I never got over my hatred of lawn mowers.

7. I hate talking on the phone, even with my closest friends. If you call me, get to your point. I don't even have a land line. My cell phone is my only phone. If you want to chat, meet me in person. We can talk all day.

Sunday, February 24, 2008

I Know What You Did Last Summer


You are not anonymous on the Internet. You'd think we'd know that by now. Apparently not. I've seen three instances on Notary Rotary over the last month, two where people posted deliberately disruptive posts thinking they were anonymous, one where someone else sent a proxy to do their bidding. In all three cases, their identity ended up being exposed and their business reputation probably took a serious hit. Pretty foolish. This seems obvious to most, but apparently some people still don't get it. Everything we do on the Internet is tracked. I.P addresses can be looked up, Google can find anything you've ever posted, your e-mail address, your home address, your phone number, and more. Remember that time you posted about your love for the Backstreet Boys? It's out there to be found. So think first. If you're posting something that you don't want attached to your name, just don't do it, even with an alias. Especially if you think it's going to tick someone off. They'll search every corner of the Internet to expose your identity. And if you're posting on a business site, it's not just embarrassment that you face, but a blow to your business as well.

Monday, February 18, 2008

Keep Your Computer Virus Free


For signing agents, our computer is our lifeline. We get our assignments, map out our trips, update our calendar, set up our billing, and download documents. Without our trusty 'puters, we're toast. The question arises often; what programs should I be running to protect my computer and keep it virus free?

First of all, I don't think there is any one catch-all program. I run several different programs that all do different things or catch different intrusions. Here's what I run (and they're all free):

Zone Alarm - Zone Alarm is a Firewall. It blocks open ports and prevents people or programs from unauthorized access of your computer. Zone Alarm was recently listed on Maximum PC Magazine's 100 Greatest PC Technologies Of All Time. Note: A couple of people on Notary Rotary mentioned that they had problems with the newer version of Zone Alarm. Regardless of which firewall you choose, it's still vital to protecting your computer. And I personally love Zone Alarm.

AVG - Anti-Virus and Anti-Spyware protection

Spybot Search & Destroy - Blocks & removes Spyware

Ad-Aware - Anti-Spyware. Even though AVG, SS&D, and Ad-Aware all detect and remove Spyware, each one has a different set of definitions, so each program finds intrusions that the other doesn't.

I also run Windows OneCare Safety Scanner. It removes a lot of junk from your computer.

Two caveats:

Some programs have ads built in. If you disable the ads, you may disable the program (For instance, many illegal download programs like Kazaa or Morpheus run adware).

If you have McAfee, you may have conflicts running another virus or spyware program. My personal opinion; AVG is better, and it's free. Uninstall McAfee.

Friday, February 15, 2008

Top Five U.S. Lenders


#1 - Countrywide Financial - $408.2 billion in mortgages in 2007, down from $462.5 billion in 2006.

#2 - Wells Fargo - $272 billion in mortgages in 2007, down from $398 billion in 2006.

#3 - JPMorgan Chase - $207.7 million in mortgages in 2007, up from $171 billion the previous year.

#4 - Bank of America - $188.6 billion in mortgages in 2007, up from $166.3 billion in 2006.

#5 - Citigroup - $151.9 billion in mortgages in 2007, up from $142.1 billion in 2006.

Tuesday, February 12, 2008

The Next Great Plan To Save The Mortgage Industry


A new plan was announced today to expand mortgage relief to include all types of mortgages, not just subprime. The brain trust of the nation’s largest financial institutions, Bank of America, JP Morgan Chase, Countrywide Financial, Washington Mutual and Wells Fargo, came up with this earth shaking plan. The plan: put forclosures on hold for thirty days. That's it, that's the big plan. You get another thirty days before you're sleeping on the street. Rejoice! We're saved!

Saturday, February 9, 2008

What's In Your Wallet?


I hope not a credit card from Bank of America. Without explanation, Bank of America raised interest rates on some of their credit cards to as high as 28%.

Monday, February 4, 2008

Welcome To Wisteria Lane

I've been told that that the outside of my condo looks like Wisteria Lane (see photo), sort of an everyday Americana where every home is cut from the same cloth (fortunately, the interior is unique and highly customizable). Looks like this cookie cutter mentality is the trend of the future, as home builders are eliminating options and going towards a one size fits all model in an effort to cut costs.

Break The Law Or Break A Heart?


Today I hate my job. Today it seems like what is right and what is legal are two different things. I've been speaking to a very nice woman over the last few days who is trying to get some affairs in order for her elderly mother. The mother is in a nursing home suffering from multiple problems, and needs to get documents notarized allowing her daughter to handle her affairs. Her I.D. expired ten years ago, and she has been physically unable to go get a new I.D. I can not notarize without a proper I.D., no one at the nursing home who knows her personally is a notary, and the Secretary of State insists that there is nothing they can do to get her an I.D. if she can't come to their office in person. I find it deplorable that the Secretary of State says they can do nothing. This can't be the first time an elderly person who is unable to travel and may be gravely ill needs to get a new I.D. Why isn't there a contingency for this?

I'd love to be able to handle this. I badly want to do it despite the Secretary of State directing me not to do so. But I know I can't. I know I'd risk my commission and my career, not to mention that if the document were contested, it would end up being invalidated. It stinks.