{"id":1042,"date":"2007-02-13T21:15:15","date_gmt":"2007-02-14T04:15:15","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=1042"},"modified":"2007-12-24T12:40:32","modified_gmt":"2007-12-24T19:40:32","slug":"is-the-subprime-mortgage-market-the-next-enron","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1042\/is-the-subprime-mortgage-market-the-next-enron\/","title":{"rendered":"Is the Subprime Mortgage Market the next Enron?"},"content":{"rendered":"

An excerpt from one of my recent posts on The Active Rain Real Estate Network<\/a>:<\/p>\n

The sub-prime mortgage market is falling apart<\/strong>. Wall Street firms are being stung by the bad sub-prime loans<\/a> they bought and have demanded that the sub-prime lenders buy those loans back. The sub-prime lenders didn’t have the money to do so. Those Wall Street firms simply swapped the debt for ownership in the firms. Once the camel got his nose underneath the tent, he didn’t like what he saw.<\/p>\n

The sub-prime mortgage market is completely tightening its lending standards. The wholesale account executives, once compensated like a proven reliever for the Padres, are applying for night gigs as bartenders to supplement their income. The words “stated income” are becoming more politically incorrect than a racial slur. The NEW AND IMPROVED sub-prime lender will emerge as the prostitute who found God<\/strong>.<\/p>\n

Here were some excerpts from some of the comments:<\/p>\n

From Mikey:<\/p>\n

Right now the lending standards are just taking out 100% subprime financing. Watching the rate sheets, low LTV stated deals are still plentiful. I think hard money can be a profitable niche, but it will remain a niche. The other thing limiting its growth potential is just the slowdown in real estate market in general.<\/em><\/p><\/blockquote>\n

From my buddy, Jeff Belonger in New Jersey:<\/p>\n

Brian… some good points. But sub prime will always be there, in my opinion. I remember when it started hitting the streets hard back in 1994-’95. The strong will survive…
\n… But there will still be those few sub prime lenders that have been positioning themselves the last 2 years, not taking every piece of crap. Names like Equi First and Decision One will be around and they still have good products that Wall Street will invest in. Why? Because of their performance records and lack of loans that go into default<\/em><\/p><\/blockquote>\n

More importantly. Some of the e-mails I received today:<\/strong><\/p>\n

From a colleague in the Midwest:<\/p>\n

Hey, do you know of something going on at New Century? Rumors are flying right now…<\/em><\/p><\/blockquote>\n

Unsolicited e-mail from my post:<\/p>\n

i’m an account executive for a major subprime lender. i am seeing fear and panic in Read more<\/a><\/em><\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

An excerpt from one of my recent posts on The Active Rain Real Estate Network: The sub-prime mortgage market is falling apart. Wall Street firms are being stung by the bad sub-prime loans they bought and have demanded that the sub-prime lenders buy those loans back. The sub-prime lenders didn’t have the money to do […]<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7,26,5],"tags":[],"class_list":{"0":"post-1042","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-enduring-interest","7":"category-lending","8":"category-real-estate","10":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":2064,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2064\/sub-prime-mortgage-crisis-caused-by-unexpected-success\/","url_meta":{"origin":1042,"position":0},"title":"Sub Prime Mortgage Crisis Caused By Unexpected Success","author":"Brian Brady","date":"October 19, 2007","format":false,"excerpt":"Sub prime mortgage are defaulting at record proportions.\u00a0 Lenders are closing their doors and confidence is waning on Wall Street. Greed, corruption, and irresponsibility have all been cited as the reasons for this contraction and collapse. While these factors might be contributing reasons, they are all byproducts from the underlying\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":852,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/852\/what-isaac-newton-knew-about-mortgage-lending\/","url_meta":{"origin":1042,"position":1},"title":"What Isaac Newton Knew About Mortgage Lending","author":"Dan Green","date":"January 4, 2007","format":false,"excerpt":"I recently wrote about sub-prime loans for the first time in a long while because the sector should start taking more headlines in the papers. I'd hate for you to be unready for it, of course. Sub-prime loans are a big part of mortgage lending. \"Sub-prime\" is a broad-sweeping term\u2026","rel":"","context":"In "Enduring Interest"","block_context":{"text":"Enduring Interest","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/enduring-interest\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2002,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2002\/the-mortgage-liquidity-crisis-is-over\/","url_meta":{"origin":1042,"position":2},"title":"The Mortgage Liquidity Crisis Is Over","author":"Brian Brady","date":"October 3, 2007","format":false,"excerpt":"The liquidity crisis in the mortgage industry is over. I don't mean that we are going back to the lending guidelines of the go-go years of 2003-2006 but the non-conforming loan guidelines are coming back to a sense of normalcy. Dan Green talked about the non-conforming home loan market being\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1828,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1828\/sub-prime-borrowers-got-lucky-they-didnt-pay-enough\/","url_meta":{"origin":1042,"position":3},"title":"Sub-Prime Borrowers Got Lucky- They Didn’t Pay Enough","author":"Brian Brady","date":"August 20, 2007","format":false,"excerpt":"I floated an idea about a federal bailout, along the lines of Chrysler in 1980, of Countrywide Financial Corporation. I wanted to highlight two things in this post: Countrywide is in trouble and their trouble is our trouble. My premise is that the collapse of CFC goes beyond the 55,000\u2026","rel":"","context":"In "Group Therapy"","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2355,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2355\/were-all-sub-prime-borrowers-who-consume-oil\/","url_meta":{"origin":1042,"position":4},"title":"We’re All Sub-Prime Borrowers (Who Consume Oil)","author":"Brian Brady","date":"December 12, 2007","format":false,"excerpt":"Residential lending is in a pretty tough spot. Mounting losses, from former white-picket fence owners, are putting a dent in the country club sets' wallets. The problem is not unlike the one we faced 20 years ago; bankers turned into riverboat gamblers. That's all changed. Today, sobriety is the buzzword\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1786,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1786\/how-big-is-the-sub-prime-mortgage-market-not-very-big-at-all\/","url_meta":{"origin":1042,"position":5},"title":"How Big Is the Sub-Prime Mortgage Market? Not very big at all","author":"Greg Swann","date":"August 10, 2007","format":false,"excerpt":"Cited by BusinessWeek Online, a very eye-opening analysis of the sub-prime mess from National Review Online:I\u2019ve thought a lot about Rain Man over the past few months as I\u2019ve been following the press coverage of the sub-prime mortgage crisis. The story\u2019s been on the front page of the Wall Street\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/1042","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=1042"}],"version-history":[{"count":0,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/1042\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=1042"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=1042"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=1042"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}