A bit about contruction and mortgages…
The following defendants were charged in a federal indictment for their roles in a mortgage fraud scheme: Bradley Grant Kitchen, 39, Provo; David R. Bolick, 50, Sandy; Steve Wells Cloward, 38, Orem; Ron K. Clarke, 38, Provo; Jeffery David Garrett,…
Todd Carpenter over at Lenderama is running a contest for the funniest post from the RE.net this year. All we can say is: Game Over: I’ve had a long time to think about it, and it’s finally time to face up to the ugly truth: I’m a victim. A victim of a pernicious system that entices innocent borrowers with 5000 square foot homes and free money and Igloo coolers, only to bury their dreams under a bunch of APR-ARM-XYZ shyster bullshit gobbledygook. Iowahawk via Paul Kedrosky [infectiousgreed]
The Southwest Journal is running as its lead story (at least online) the sale of Financial Freedom Realty to a group of Entreprenuers, led by former commercial real estate agent Rocky Osborn and two other silent partner residential real estate agents. The article contains a choice quote-string from yours truly that we’d like to clarify: Alex Stenback, a mortgage banker who runs the real estate blog www.behindthemortgage.com, said he doubts Financial Freedom has much value. “Financial Freedom Realty existed to serve the projects that Gassen was converting,” Stenback said. “They hung some nice numbers on the market for a few years but once the condo conversion train ground to a halt, there’s just not a whole lot left.” Stenback said he couldn’t begin to guess how much might have been paid for the company, but he didn’t think it was much. “You’d be hard pressed for me to write a check for fifty grand for that thing,” he said. Stenback said making Financial Freedom work in today’s struggling market would be challenging, but easier than starting from nothing. “The bottom line is the real estate brokerage,” he said. “Attracting those people and retaining those people. It’s hard when there are a lot of other established places in town.” One point we press a lot around here is proper consideration of sources. As in, “does this person really have any clue about what he’s/she’s talking about.” Though we stand by the other statements in the above, the “price” opinion was voiced from a position of complete ignorance. So for the record: We haven’t the first earthly clue of what Financial Freedom Realty looks like as a business. For all we know, they have assets galore, a full pipeline of projects, and a stable of productive agents not reliant on the continuance of the conversion market. In other words, FFR might be worth millions, or it might be worth $50k. Either way, opening our yap about a number was a misstep that won’t be repeated. Financial Freedom Realty Sold [SW Journal]
Graphic via MSNBC Last Week: Despite the Fed cutting key rates, mortgage rates lost some ground last week. the Consumer and Producer Price Indices both posted larger than expected increases. Because inflation eats into the returns of the mortgage bonds from which mortgage rates are derived, any sign of it, especially of it is unexpected, tends to force rates upward. This Week: Speaking of inflation, on Friday the Personal Consumption Expenditures Index, or PCE prints. This is a key inflation benchmark, so a spike here, following last week’s upside surprises in CPI and PPI, could send mortgage rates up. Meantime, the market will need to digest housing starts, GDP for Q3, and the Philadelphia Fed index. All are measures of economic strength and activity - a bad housing start number is likely priced in, but any unexpected weakness in GDP or the Philly Fed could push rates down. This Week’s Economic Calendar [Barrrons]
Budimir Radojcic, 54, Crown Point, Indiana, allegedly led a financial crimes enterprise that netted more than $3 million by obtaining federal grants and mortgages under false pretenses. The 52-count indictment also names Radojcic‘s two daughters,…
Michael Allen Bryant, 5300 N.W. 33rd Ave., Suite 217, Fort Lauderdale, was suspended by the Florida Supreme Court for 18 months, effective 30 days from a November 15 court order and ordered to pay restitution of $6,120.92. Bryant, admitted to practice …
Nevada Attorney General Catherine Cortez Masto and Secretary of State Ross Miller are warning all Nevadans to beware of fraudulent foreclosure rescue schemes. Recent reports place Nevada first in the nation for its number of foreclosures. T…
Local: · New York Times Covers Phillips Neighborhood [NYT] · Judgment Forces Fomer Vikings Owner to Sell $53M Home [Strib] · Reading the Real Estate Market [Strib] Elsehwere & Otherwise: · Cramer: Fed Needs to Whack Rates for Psych. Impact [The Street] · FHA: Senate Passes Changes to Limits, Down Payment [WSJ] · Liquidity Always Injected? How About Squirting [longorshortcapital] · Get on the Repo Bus [LATimes] · Even Your Classic Christmas Movie is About Sub-Prime Now [pk]
James A. Warsing, Ashtabula, Ohio, has been charged with eight counts of Mail Fraud. The indictment charges that between 2001 and 2005, James A. Warsing, using his company, WJW Enterprises, devised a scheme to defraud various homeowners threatened wi…
Highland Financial, a Post Falls, Idaho business that offers mortgage foreclosure rescue services, will change its business and advertising practices. Under the terms of a legal settlement, Highland Financial agrees to comply with the Idaho Consu…