View Full Version : US mortgage lenders are starting to go bankrupt
https://moneywise.com/mortgages/mortgages/what-it-means-that-some-mortgage-lenders-are-broke
The real estate market just can’t catch a break, with inventory of resale homes remaining low and rising interest rates making it harder for buyers to justify making the leap.
And now we can add mortgage lender bankruptcies — and the rise (and fall) of “non-qualified mortgages” –- to the factors aggravating an already uncertain market.
But what does the trouble around these NQM mortgages really mean? And what does it mean for non-traditional buyers trying to get a foothold in the market?
A “non-qualified” mess?
NQMs use non-traditional methods of income verification and are frequently used by those with unusual income scenarios, are self-employed or have credit issues that make it difficult to get a qualified mortgage loan
They’ve previously been touted as an option for creditworthy borrowers who can’t otherwise qualify for traditional mortgage loan programs.
But with First Guaranty Mortgage Corp. and Sprout Mortgage — a pair of firms that specialized in non-traditional loans not eligible for government backing — recently running aground, real estate experts are beginning to question their value.
First Guaranty filed for bankruptcy protection while Sprout Mortgage simply shut down early this summer.
In documents tied to its bankruptcy filing, First Guaranty leaders said once interest rates started to climb, lending volume dropped and left the company with more than $473 million owed to creditors.
Meanwhile, Sprout Mortgage, which leaned heavily on NQMs, abruptly shut down in July.
FromMyColdDeadHand
08-31-22, 14:50
In documents tied to its bankruptcy filing, First Guaranty leaders said once interest rates started to climb, lending volume dropped and left the company with more than $473 million owed to creditors.
Is that from operations or from financial transactions? If financial, how did that accrue? As interest rates rose, the loans that they had in process lost value? These guys sell of the loans, they don’t hold them, right?
Are NQMs the same as the trolls that bought houses which lead in the 2008 crisis?
hotbiggun42
08-31-22, 15:49
Sounds like a good time to buy out mortgage lenders on the cheap.
ChattanoogaPhil
08-31-22, 15:49
Trump admin implemented a scheme allowing homeowners to not make their mortgage payments and forbid foreclosure, as well as allowing renters to not pay rent and forbid eviction. What impact did that have on lenders?
hotbiggun42
08-31-22, 15:57
Trump admin implemented a scheme allowing homeowners to not make their mortgage payments and forbid foreclosure, as well as allowing renters to not pay rent and forbid eviction. What impact did that have on lenders?
I dont recall Trump telling me i didnt have to pay my mortgage and if he did i would lol.
Was this a CNN story?
Now i do recall our democrap governor implementing a no eviction scam.
FromMyColdDeadHand
08-31-22, 16:19
Sounds like a good time to buy out mortgage lenders on the cheap.
Wait....
CDC has a moratorium on evictions. I remember it was a big deal, but when it ended, there wasn't this huge rush to evict people? I think the last thing that people thought would happen is the current (up till now) housing boom..
hotbiggun42
08-31-22, 16:29
Wait....
CDC has a moratorium on evictions. I remember it was a big deal, but when it ended, there wasn't this huge rush to evict people? I think the last thing that people thought would happen is the current (up till now) housing boom..
If i recall the CDC despised Trump and tried to undermind his athourity during the fake pandemic. I think and i could be wrong but didnt the states tell Trump to stay out of their decisions.
Was the mortgage industry a never ending dumpster fire before the Government started “fixing it”?
Was the mortgage industry a never ending dumpster fire before the Government started “fixing it”?
When Wall Street got a bailout, what they got in effect was a forever bailout.
OutofBatt3ry
08-31-22, 22:03
Trump admin implemented a scheme allowing homeowners to not make their mortgage payments and forbid foreclosure, as well as allowing renters to not pay rent and forbid eviction. What impact did that have on lenders?
Care to provide a link?
Yes, many deadbeat renters are crying now.....
ChattanoogaPhil
09-08-22, 18:52
Care to provide a link?
Apologies for the tardy reply.
Direct from the Trump Admin bragging on their eviction and foreclosure moratorium schemes and extending same.
------
Search WhiteHouse.gov
FACT SHEETS
President Donald J. Trump Is Working to Stop Evictions and Protect Americans’ Homes During the COVID-19 Pandemic
Issued on: September 1, 2020
I want to make it unmistakably clear that I’m protecting people from evictions.
President Donald J. Trump
TEMPORARILY HALTING EVICTIONS: President Donald J. Trump is taking action to put a temporary halt to evictions during the COVID-19 pandemic.
Following an Executive Order by President Trump, the Centers for Disease Control and Prevention (CDC) is using its authority to temporarily halt evictions through the end of 2020 in an effort to slow the spread of COVID-19.
Under the CDC Order, American renters who meet certain conditions cannot be evicted if they have affirmatively exhausted their best efforts to pay rent, seek Government rental assistance, and are likely to become homeless due to eviction.
Those who benefit from this assistance are still obligated to pay accrued rent or housing payments in accordance with their lease or contract.
Landlords are still permitted to pursue eviction against tenants committing criminal acts, threatening the health or safety of other residents, and damaging property, among other offenses.
The intent of this Order is to use Federal authority to prevent evictions that could exacerbate the spread of COVID-19.
It is essential during the pandemic that Americans have an effective place to quarantine, isolate, and social distance, and evicting people from residences undermines that objective.
PROTECTING AMERICANS: President Trump has provided extensive relief to help keep Americans in their homes during the fight against COVID-19.
The Trump Administration is following through on President Trump’s Executive Order to protect American homeowners and renters during the COVID-19 pandemic.
Last week, the Department of Housing and Urban Development (HUD) announced they would extend their eviction and foreclosure moratorium for Federal Housing Administration (FHA)-insured homeowners through the end of the year.
HUD has already allocated $7 billion in grants to State and local governments that could be used for rental assistance to address increased eviction risk.
HUD is also explicitly considering factors associated with eviction risk when allocating nearly $2 billion in CARES Act funding and working with Federal grant recipients to facilitate their use of various funds to assist renters at risk of eviction.
The Department of the Treasury has also allocated $142 billion in Coronavirus Relief Funds to States and localities, with broad application for rental assistance and other programs.
PROVIDING ASSISTANCE: Over the course of the pandemic, President Trump has made providing assistance to Americans facing financial hardship a top priority.
HUD is providing housing counseling services and has published resources and guidance to help tenants, landlords, and lenders, including a toolkit to help landlords and public housing authorities work with their tenants during this time.
President Trump successfully delivered economic impact payments to tens of millions of Americans to help relieve burdened families and workers.
----
More here: https://trumpwhitehouse.archives.gov/briefings-statements/president-donald-j-trump-working-stop-evictions-protect-americans-homes-covid-19-pandemic/
ChattanoogaPhil
09-08-22, 19:44
If i recall the CDC despised Trump and tried to undermind his athourity during the fake pandemic. I think and i could be wrong but didnt the states tell Trump to stay out of their decisions.
The above WH communique is dripping with Trump's "I" chest-thumping. If it was a CDC plot to undermine Trump... well... the below speaks for itself.
I want to make it unmistakably clear that I’m protecting people from evictions.
President Donald J. Trump
hotbiggun42
09-08-22, 20:13
The above WH communique is dripping with Trump's "I" chest-thumping. If it was a CDC plot to undermine Trump... well... the below speaks for itself.
I want to make it unmistakably clear that I’m protecting people from evictions.
President Donald J. Trump
Ah yes, when fellow citizens were sent home with no job and big business padded their bottom line with tax dollars meant to save peoples jobs.
God bless Trump he really tried to help the working class didn’t he?
ChattanoogaPhil
09-08-22, 20:24
A. Don't remember Trump doing that
B. CDC tricked Trump into that
C. Thank God Trump did that
ChattanoogaPhil
09-08-22, 21:22
God bless Trump he really tried to help the working class didn’t he?
-------
I'm in my 60s. Despite unrelenting resistance, I believe Trump did more to improve America than any president in my lifetime.
Averageman
09-09-22, 08:32
I don' think anyone ever thought COVID-19 would be the power grab it turned in to.
I would like to know how Trump would have delt with it without the Left taking over and putting us in masks at home for a year.
ChattanoogaPhil
09-09-22, 20:49
I don' think anyone ever thought COVID-19 would be the power grab it turned in to.
I would like to know how Trump would have delt with it without the Left taking over and putting us in masks at home for a year.
We'll never know. What is known is that the Trump Admin launched/cheerleaded the lockdowns, and Trump publicly disagreed with republican governor Kemp when he decided to allow the good people of Georgia to go back to work without meeting CDC's Covid guidance bs.
“I told the governor of Georgia, Brian Kemp, that I disagree strongly with his decision to open certain facilities,” Trump said at a White House coronavirus task force press briefing. “I think it’s too soon, and I love the people,” Trump said. “I love those people that use all of those things, the spas, the beauty parlors, the barbershops, tattoo parlors, I love them. But they can wait a little bit longer, just a little bit — not much — because safety has to predominate.”
Of course we all know what that "little bit" morphed into across America.
Business lockdowns, unconstitutional end-runs around congress redefining firearms, eviction and foreclosure moratoriums... In many ways the Trump Admin paved the way for further democrat abuse, and bragged about it. Democrats didn't force Trump, he owns his words and actions.
Don't misunderstand, I voted for and financially contributed to Trump's 2016 and 2020 campaigns, and would eagerly do so again. However, there were some major issues I disagreed with.
Adrenaline_6
09-09-22, 21:16
If you step back and look at from a top down neutral point of view. Trump had to back lockdowns, and everyone else for the most part, and err on the side of safety. That was pure politicking. Think about it...if you go against the norm and a bunch of people die...you take full blame and no defense from it. You stick with everyone else, there is an out and like everyone else claims, was the best decision with the info that they currently had. Was he being pompous in claiming it was him and boasting...sure...absolutely...that has always been Trump. He has his faults like everyone else did and does. Did he choose the best path of action at the time from a political standpoint...also absolutely. Was it right...no.
What I find hilarious is the people that hate Trump and bring up all this type of crap can provide no one else that would have been better at the time. It's a pointless bitch fest. Also, they have no one to blame but themselves by not voting for him in 2020 in which the current admin was elected and is considerably making things worse, on purpose no less. Where is the bitch fest about that? Crickets.
The_War_Wagon
09-09-22, 21:18
The bankster geniuses never learn
If Trump's advisors (Fauci and co.) hadn't been power hungry little weasels he may have gotten different advice, and there may have been no lockdowns.
I'm still waiting for China to be punished for setting covid-19 loose.
Then of course, the little weasel had a hand in creating it, so I guess it's a bit of a circle.
The bankster geniuses never learn
You don't really think they're losing in this do you?
You don't really think they're losing in this do you?
They've already been told that they will be bailed out, again.
Once the banks have been bailed out, mortgages for certain diversity checkboxes will be forgiven. Just like with the student loans. Wait for it. It's coming.
You got a free house!!!!
https://images.says.com/uploads/story_source/source_image/596025/fd0f.gif
Adrenaline_6
09-10-22, 10:41
You don't really think they're losing in this do you?
Especially with the Bail In policy they put in place. Everyone with any money in the bank will be bailing those banks out with their own money. At least you'll get a fancy IOU note for it.
The_War_Wagon
09-10-22, 11:11
You don't really think they're losing in this do you?
No, but they make bubbles thinking they'll last forever. I wouldn't mind seeing a few more of them leaping from skyscrapers though.
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