Self-billed as "the largest conference in default servicing" -- a distinction we think goes to the annual MBA Servicing event. Still a large event, historically comprised primarily of REO real estate specialists.
I hope you all got out and enjoyed some fireworks this past weekend. My family went down into our little historic town, not all that far north of where George Washington and his men wintered the year we almost lost it all, and sat with friends and neighbors on the side of the hill to watch the show. I thought about mentioning to my kids that these fireworks were real to the soldiers and civilians who fought during the Revolutionary War, and in every war since then; that they represent more than a good time with friends and family, but I didn't.
A cursory glance at any history book more than a decade old (back when we used to compile historical information into books instead of wikis that can be easily updated as we go along) will reveal that great leaders always seem to emerge during highly volatile times. Few are the truly great who inherited a peaceful land in a time of plenty — and still made it into the history books. There may have been some, but they are pretty much all covered together in a sentence that usually goes something like, "and then there was a 1,000 years of peace and prosperity."
Sucks to be those guys.
Bond insurer ACA Financial Guaranty filed suit Thursday against Goldman Sachs.
The suit alleges fraud and seeks $30 million in compensatory and $90 million in punitive damages stemming from the role the investment bank played in the marketing of the synthetic collateralized debt obligation named ABACUS.
Goldman Sachs developed ABACUS and sold it to investors on behalf of its hedge fund client Paulson & Co. in 2007.
I caught an old movie over the long weekend. One of the cable channels (I don't know which one. It comes on after you hit the next channel button a couple hundred times in search of something to watch) was running the 1985 film "The Goonies." It took me back to my college days and surprised me with a critical connection to the mortgage lending business I'd never noticed before.
Sometimes offshoring sounds like a bad word. In reality, offshore mortgage servicing simply means using remote staff, usually to take advantage of lower labor and overhead costs and round-the-clock staffing availability. But legitimate questions remain. In the midst of increasing compliance pressures, is offshoring a sound strategy for mortgage servicers looking to stay competitive, or a fast track to dissatisfied customers and trouble with the CFPB?
Houses that have been rehabbed in the recovery project are now being sold as quickly as they are completed, and the profit on each house goes right into rehabbing the next one. In the past two years, the company has rehabbed and sold 58 homes, and has plans to do 200 more.
The fate of the Fannie and Freddie investors is not our concern. We are concerned about what happens to communities. And what is happening right now is that the future ability of working class families to obtain responsible home loans is in serious jeopardy.