Posts

Competing Against “Losers” (Companies Willing & ABLE To Lose Millions Or Billions)

Ken McElroy is one of America’s most prominent real estate investors. He runs a huge real estate fund, owns hundreds of millions worth of real estate himself, works with “Rich Dad” Robert Kiyosaki, publishes a prominent newsletter and frequently comments on real estate trends in general. That is why I took notice when Ken recently […]Read More

“Stips;” Loan Salability; Facing Huge Losses; And Why A Competitor Went To Bat For Us

What is the scariest thing on the planet? For mortgage banks, it is an unsalable loan. Mortgage banks literally borrow money to fund mortgage loans – using what is called a “warehouse line.” Mortgage banks only make money if and when they sell those loans that are “sitting” on their warehouse lines. For example, when […]Read More

Biggest Increase in 3 Years; Unpredictability/Timing the Markets

We are seeing the biggest rate increase in 3 years. Investors moved into stocks and out of bonds, and rates climbed. Trump’s promises to cut taxes, to increase government spending and to deregulate were perceived as positive signs by investors. Investors also perceive inflation risk b/c Trump’s policies might require more government borrowing. Inflation risk […]Read More

Difference Between Servicer and Mortgage Holder/Owner

Borrowers often get confused about the difference between their loan’s “Servicer” and their loan’s “Owner”. After a mortgage bank funds and records a loan, they sell the loan either to other “investors” (big banks, insurance companies, pension funds, etc.) or to Fannie Mae/Freddie Mac. In many cases, however, mortgage banks sell the “Servicing” separately from […]Read More

Loans Have To Be “Salable;” No Exceptions For Strong Borrowers

We have seen a few major mortgage companies go out of business lately, despite a strong market for mortgages overall. One of the reasons they went out of business was their inability to sell loans on the secondary market. Mortgage banks fund loans with large warehouse lines or lines of credit. They then sell the […]Read More

Rates Way Down, When They Are Supposed To Be Up? What Is Going On?

Rates have dropped precipitously in recent days b/c of the global sell-off in stocks. Once again, weak economies worldwide are spooking investors and causing them to sell stocks and move to bonds en masse. When investors move to bonds, the price of bonds increases b/c of increased demand, and this pushes yields and rates down. […]Read More

Condo Owner Occupancy Ratios Irrelevant for Owner-Occupants

This is a reminder that Condominium Owner-Occupancy Ratios are irrelevant if the person seeking financing intends to occupy the unit she is buying. It is only investors looking for financing who need to worry about occupancy ratios. Most investor financing requires occupancy ratios greater than 50%. Jay Voorhees Founder/Broker | JVM Lending (855) 855-4491 | DRE# […]Read More