New FDIC Plan Will Help Clients of The Loan Modification Center

Washington, D.C. (PRWEB) January 12, 2009

Sheila Bair, who was named chairperson of the Federal Deposit Insurance Corporation (FDIC) in 2006, has reiterated her view that the best approach to resolving the current housing crisis is to encourage lenders to renegotiate mortgages with homeowners.

Bair’s proposal calls for a loan modification program so that payments are reduced to 31% of homeowners’ gross income (Sasseen & Francis, 2008). The federal government would guarantee to cover part of the losses if the homeowners re-default despite this assistance. Bair claims that this approach would save 1.5 million homeowners and would cost the federal government approximately $ 24.4 billion (Sasseen & Francis, 2008).

The proposed approach has faced a barrage of criticisms and doubts. Some have claimed that the renegotiation of millions of mortgage loans will take too long to have a practical effect (Wallison & Pinto, 2008). Others have pointed out that it will be difficult to renegotiate certain types of loans, particularly those that have been securitized, or sold to investors (Sasseen & Francis, 2008). Critics have also argued that previous efforts to renegotiate mortgages have not been particularly successful. Specifically, there is evidence that more than half of the mortgages renegotiated during 2008 are already at least 30 days past due (Sasseen & Francis, 2008). Treasury Secretary Hank Paulson argues that Bair’s plan is problematic because it increases government expenditures and it rewards banks when homeowners default (Sasseen & Francis, 2008).

Alternative solutions have been proposed for the housing mess, but these too have perceived flaws. For example, bailing out the major mortgage companies might simply encourage further risky practices in the future (Murphy, 2008). Treasury Secretary Paulson claims that the best approach is to reduce mortgage rates, in order to encourage more home purchases. However, this approach has been criticized because it won’t help borrowers who are already in trouble (Sasseen & Francis, 2008). Martin Feldstein, a Harvard economist, has suggested that the federal government should make loans to troubled homeowners to cover 20% of their mortgages (Feldstein, 2008). However, this raises the risk of borrowers, in turn, defaulting on their debts to the government (Murphy, 2008). There is, additionally, widespread sentiment that helping companies or borrowers who got themselves into trouble is unfair to those who made more reasonable financial decisions.

The housing crisis came about because trillions of dollars of mortgage loans were made to borrowers who were not really able to repay the loans. Many of the loans were based on adjustable rates that greatly increased the size of homeowner payments after a certain period of time (Murphy, 2008). The situation led to a growing number of defaults and a substantial decline in housing values. The proposed solutions to the problem are based on the question of whether it is better to assist mortgage companies or borrowers. There seems to be a partisan divide on this issue, since many Democrat politicians, such as Bair, are in favor of helping borrowers, while Republican leaders, like Paulson, are in favor of helping the big companies. In spite of this controversy, there is widespread agreement among policymakers that the most important step is to strengthen regulation of the housing market and the mortgage industry (Murphy, 2008).

References

Feldstein, M. (2008). How to help people whose home values are underwater. Wall Street Journal (November 18), A21.

Murphy, R. P. (2008). Can the Feds save the housing market? Freeman 58(5), 8.

Sasseen, J., & Francis, T. (2008). A standoff over housing relief. Business Week (December 22), 30.

Wallison, P. J., & Pinto, E. (2008). Let’s use Fannie to clean up the mess it made. Wall Street Journal (October 25), A13.

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Overture Technologies and the Association of Independent California Colleges and Universities (AICCU) Announce Marketing Partnership for Student Loan Marketplace

Bethesda, Maryland, and Sacramento, California (PRWEB) April 16, 2009

The Association of Independent California Colleges and Universities (AICCU), representing California’s 75 non-profit accredited colleges and universities with more than 289,000 students, and Overture Technologies, the leading provider of decisioning software solutions that enable transparent, accurate and responsive lending processes, announced today a marketing partnership to create the California Student Loan Marketplace. The California Student Loan Marketplace will be an online education financing resource that connects students and their families with lenders to encourage smart borrowing practices and compare reliable private student loan terms. Prager, Sealy, & Co., LLC, a leading higher education investment banking firm, will serve as the program manager for AICCU.

“It is more important than ever for families to have clear, accurate, and easy-to-understand information about alternatives for financing college costs,” said Jonathan Brown, AICCU president. “The California Student Loan Marketplace will help provide students with affordable higher education at top institutions.”

The California Student Loan Marketplace will allow schools to provide students and their families with access to unbiased information on financing higher education. The Marketplace will offer students, families, counselors, and institutions the following:

*Reliable loan terms from multiple lenders: The Marketplace will provide what students need – the ability to compare and select reliable financing options – not “as low as” advertisements – with a complete listing of reliable loan terms.

*Preservation of borrower credit scores and privacy: The Marketplace will provide a more efficient, safer loan shopping experience for students by pulling a single credit report to match borrower information with multiple lenders’ student loan products and allowing borrowers to choose which lender receives their information.

*Smart borrowing practices: The Marketplace will provide information on how to borrow wisely, including exhausting federal loan options before turning to private loans, and using a co-signer to achieve the best rates and fees.

*Guiding students to make informed decisions: The Marketplace can be configured with school-specific information about policies, deadlines, academic programs, and grade-levels to assure that students receive custom-tailored loan options.

*Enhanced transparency: The Marketplace will be an open network of lenders that allows schools to provide students with meaningful guidance in a safe and trustworthy environment.

“Overture is pleased to work with AICCU, a trusted group that is dedicated to connecting students with lenders for smarter financing of their education at private, non-profit colleges in California,” said Peter Carroll, Overture Technologies’ vice president, product marketing.

About AICCU

Since 1955, the Association of Independent California Colleges and Universities is the voice of California’s private, non-profit, WASC accredited colleges and universities for state and federal issues. AICCU schools enroll over 280,000 students annually. Founded in 1955, AICCU offers research, consolidated purchasing, and professional development opportunities to member schools; it also provides information to counselors, students, and parents about higher education in California.

About Overture Technologies

Founded in 2000, Overture Technologies is the leading provider of decisioning software solutions that enable the transparent, accurate and responsive lending processes required in today’s mortgage and higher education industries. Overture’s customers are dedicated to providing superior mortgage underwriting, servicing and securitization services and to increasing students’ access to higher education financing alternatives. Our leadership team applies decades of industry experience from leading financial services and technology firms to help our customers achieve their goals.

About Prager, Sealy & Co., LLC

Since Prager, Sealy & Co. was founded in 1987 with the assistance of two universities, higher education finance has remained a primary focus and strength. The firm’s mission is to provide clients with unparalleled personal and professional service, approaching each engagement with integrity, innovation, and insight. Prager, Sealy is committed to redefining investment banking by offering broad strategic advice with expert market execution.

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myAutoloan.com Experiences Dramatic Increase in Auto Loan Demand for 2nd Quarter 2009

Irving, Texas (PRWEB) July 12, 2009

myAutoloan.com, an online direct to customer auto finance company, has seen a 113.4% percent increase in applications for the second quarter 2009 compared to second quarter 2008. Just as dramatic, comparatively, the second quarter of 2009 to the first quarter 2009 has shown an increase of 77.6%. The demand for direct to consumer auto finance has jumped significantly during the first six months of 2009.

Finance applications for the purchase of new and used cars as well as refinance loans, has risen sharply due much in part to the increase demand for the limited indirect financing that is available through traditional channels at dealerships. These traditional channels have left consumers without options thereby leaving consumers to apply online in search of alternative financing. They have been driven to expand their search options and through the internet, the consumer is finding alternative financing solutions. This is clearly resulting in the large increase of auto loan application volume.

“We are absolutely delighted to be in a position to help so many people with solutions to their auto finance needs,” said Dale L. Peterson, President of myAutoloan.com “and once again, this continues to signal that demand for direct to consumer lending for the purchase of new and used autos and auto refinance loans is much bigger than the supply of financing. We experienced the same strong demand in the first quarter as we see lenders tighten credit and leave the direct market because of a lack of available ABS securitization.”

Peterson also stated that, “As we monitor the month to month activity, the strength of the demand from direct consumer financing customers continues to search for a relaxation of some of the overly cautious parameters they are evaluating applicants by. We’ve seen interest rates increase, and credit qualifications become so narrowly defined that all anyone can do is wait for lenders to increase their activity. We seriously believe that it’s a matter of time before visionary companies enter and capture market share in this direct to consumer market.

“It is still a very challenging marketplace,” Peterson said, “with all that has happened, the Big three automakers, the bailouts, the reorganizations and restructurings in just the last 90 days. However, we continue to be excited about the future and are pleased with the positive growth that we have been able to achieve. Although uncertainty remains as to when credit will loosen up, the industry will emerge stronger and more prepared to meet the changing needs of the consumer market. Our overall long term outlook of our industry remains positive.”

About myAutoloan.com:

myAutoloan.com is a registered trademark of and a division of Horizon Digital Finance, L.L.C. which began operation in 2003. The company is a privately held, direct-to-consumer, internet-based financing marketplace that helps consumers take control of the research, finance and buy processes for New and Used Auto Loans, Refinance Auto Loans, Private Party Auto Loans and Lease Buyout Auto Loans. Offering a wide range of products and services to simplify the search for information and funding alternatives, consumers are provided with a secure, confidential place to obtain up to four loan offers. myAutoloan.com facilitates the matching of lenders based upon customer needs via a patent pending, proprietary analysis and evaluation process called Preferred Placement

Salvaging the Economy Commercial Loan Restructuring

Clearwater, FL (Vocus) July 23, 2010

As the economy stumbles along, Guardian Solutions has become inundated by large numbers of business owners with income producing commercial properties that require loan restructuring to keep their doors open.

The U.S. unemployment rate is nearly 10% according to official government statistics, but what the government fails to clarify is that these numbers do not represent individuals who are not eligible for unemployment benefits and part-time workers who would prefer to be full-time. In reality, with those factors considered, true unemployment in the U.S. is closer to 17%.

With the unemployment rate as high as it is, the last thing this country needs right now is a slew of securitized commercial property foreclosures on businesses that are employing people, said Jeramie Concklin, CEO of Guardian Solutions, a commercial loan restructuring firm that has been helping its clients avoid reaching the foreclosure stage and helping them return back into income-producing assts.

Now add to this already dismal economic situation the fact that commercial real estate industry analysts expect delinquency rates leading to foreclosures to increase further through this year and to peak in late 2011, early 2012. Moreover, Deutsche Bank estimates that around $ 2 trillion in commercial mortgages are expected to come due within the next four years.

Short of a loan restructuring, commercial property-owners may suffer the consequences of losing their income-producing asset, which subsequently will produce even more unwanted repercussions on the economy. Lending institutions will feel the effects severely if they have nonproducing assets in a market flooded with foreclosed properties, adding to even further illiquidity in the credit markets.

The logical solution is for banks and commercial borrowers to agree on a mutually beneficial modification or restructure. There are various restructuring methods a bank can take. One way is for banks to decrease their rates permanently or temporarily, which can help borrowers avoid foreclosure. A fractional drop in interest rate may eliminate tens of thousands of dollars from a property-owners annual debt burden, and potentially, save hundreds of thousands if not millions for the lending institutions because now the property in question has avoided foreclosure.

The point is to give borrowers the time and the tools necessary to stabilize the property and turn it back into a positive-cash-flow business. Doing this allows the lending institution to book the property as a Performing Asset. Another scenario is how to effectively deal with the maturation of a loan. Banks might need to extend the maturity dates on loans to push back untenable balloon payments and keep the borrower in business. By doing this, the bank is ensuring the property continues to be a performing asset, not a liability that potentially needs to be sold at auction for an amount below the existing Note.

Because of the technical and legal aspects involved with restructuring a commercial loan, many property-owners may ignore their position and accept foreclosure rather than work proactively to save their investment. Commercial loan-restructuring companies exist, however, and at times can help stressed property-owners navigate the complex procedures, negotiations and nuances associated with a successful loan workout.

Concklin added, Guardian Solutions addresses each property we represent individually in accordance with all the issues at hand. Once we are prepared with every piece of relevant information and a realistic game plan, we enter negotiations with the Special Servicer, or in some cases the Master Servicer. Our intent is to always secure the best possible terms for the client while simultaneously addressing the concerns of the lending institutions

About Guardian Solutions:

Guardian Solutions is the one of nations largest commercial loan restructuring companies and is committed to helping commercial property owners save their properties. The companys seasoned team is experienced in a variety of disciplines and able to provide customized restructuring solutions. For more information, visit http://www.GuardianSolutions.org.

Contact:

Jamie Sene

Vice President, Marketing

Guardian Solutions

727-442-8833

jvs(at)guardiansolutions(dot)org

http://www.GuardianSolutions.org

###







Loan Restructuring A Sign Of Hope In A Dismal Commercial Real Estate Industry Forecast

Clearwater, FL (Vocus) August 9, 2010

Although the U.S. economy appears to be showing preliminary signs of recovery with the stabilization of some large financial institutions, the commercial real estate market continues to be negatively affected by the ongoing decline of home prices, the high rate of commercial loan defaults and an unmoving high unemployment rate. Treasury Secretary Timothy Geithner recently darkened this scenario by warning that unemployment could continue to rise before subsiding.

Jeramie P. Concklin, CEO of Guardian Solutions, a commercial loan restructuring firm based in Florida had this to say, The rate of growth of delinquencies in commercial mortgage-backed securities (CMBS) real estate loans did show some slight signs of moderating in July, but despite that, we are still seeing very high numbers of new distressed commercial mortgages in need of restructuring every week as evidenced by CMBS delinquencies surpassing 60 billion dollars, an increase of 3.11 billion from just the month prior.

A bright spot in this gloomy scenario is surfacing due to the efforts of independent commercial loan restructuring firms such as Guardian Solutions. According to Trepp, a leading provider of CMBS and commercial mortgage data and analytics, a recent trend has emerged that is having a positive effect on CMBS loans due to the increase in loan modifications by lenders. Loan modifications through July of this year already have surpassed those for all of 2008 and 2009 combined. Loan modifications (have) accelerated dramatically in 2010, the Trepp report said. This puts downward pressure on the delinquency number, as troubled loans get resolved and move from the delinquency category.

Based on the successful commercial loan workout results weve been getting for our clients, I can see that the biggest mistake that property owners tend to make is to do delay addressing the issue at the first sign of trouble, or even worse, to try to deal with lenders or special servicers on their own. But that being said, commercial property owners should know that they can take steps to improve their situation by seeking professional help and guidance while the situation is still salvageable; the longer they wait to act, the more difficult their situation becomes, added Concklin.

Commercial property owners who are trying to keep their properties viable are seeking help from firms like Guardian Solutions that specialize exclusively in commercial loan modification. Currently, there are only a handful of specialized firms that hire highly qualified employees, such as accountants, MBAs and real estate professionals to deal specifically with the complexities involved in a restructuring a securitized commercial property.

Guardian Solutions helps commercial real estate owners in distress every day, said Concklin. We are saving all types of commercial properties facing default. But the sooner we get into negotiations, the more options we have available to help. A restructuring plan thats put in place early on usually contains the most favorable terms and achieves the best results. With the dismal forecasts we have for the economy and for the commercial real estate market, its the wise property owners who are taking a look at their assets and preparing now for the eventual market declines.

The technical and legal aspects involved with securing a commercial loan restructure prompts many property owners to ignore their position and grudgingly accept foreclosure rather than save their investment. This can result in more than just losing the property, it can severely damage the borrowers credit and even lead to personal bankruptcy.

About Guardian Solutions

Guardian Solutions is the one of nations largest commercial loan restructuring companies and is committed to helping commercial property owners save their properties. The companys knowledgeable mitigators are experienced in a variety of disciplines to provide customized restructuring solutions. For more information, visit http://www.GuardianSolutions.org

Contact:

Jamie Sene

Vice President, Marketing

Guardian Solutions

727-442-8833

http://www.GuardianSolutions.org

###







Related Securitization Press Releases

The Mortgage Industry Secret that Prevents You from Getting a Loan

Reno, NV (PRWEB) September 15, 2010

If your credit is good and youve tried to get a home loan, you may have found yourself in the perplexing position of being told you arent qualifiedeven if you are. Whats going on here? The answer is a secret problem in the mortgage-lending business called Repurchase Demands (loan buy-backs)and they are slowly strangling the industry. Thus, fewer loan products are available for the qualified borrower, says Scot Baker, a mortgage repurchase defense expert.

The problem started with the popping housing bubble in 2007. As the financial system collapsed, so did mortgage loans that had been securitized. This caused a systematic failure at Freddie Mac, Fannie and Ginnie Mae (the sources for FHA and VA loans). Congress demanded that these institutions become solvent after two major bailouts.

Today, Fannie Mae, Freddie Mac, and the Mortgage Insurance Companies are pushing back on loans up to 5 years old to the aggregators (Wells Fargo, Citigroup, Chase, Bank of America, etc.), who in turn are forcing buy-backs on the originators (Main Street mortgage companies). In the first quarter of 2010, these agencies forced lenders to repurchase $ 3.1 billion in mortgages, up 64% from one year earlier. Additionally, Ginnie Mae pushed back $ 15.5 billion in loans in the first quarter 2010 versus $ 4.9 billion in the year ago quarter. To further complicate things, the FDIC is pushing back on loans they inherited from seized banks, most notably Indy Mac.

The effect of loan buybacks is far-reaching and one of the major obstacles to a housing recovery. Repurchase demands have led to fewer lenders, an increase in loan loss reserves, increased overhead to handle the buyback demands, fewer choices for the consumer, and a lack of loan product availability for everyone, especially the self-employed. The overall effect on lenders is to tighten guidelines, a move to more time-consuming underwriting of each file, and a reluctance to take reasonable risks.

The result: You cant get a loan, even if youre qualified.

Most of the trouble with bad loans in the past centered around stated income loans above 80% loan-to-value, loose underwriting guidelines and pricing models that enticed lenders to place borrowers in loans not in the borrowers best interest, Mr. Baker says. However, my company, Pyramid Quality Assurance, sees a large percentage of buy-back demands on loans the originating lender underwrote to the program rules and guidelines in place at the time. Facts arising after the loan originationsuch as job loss, new debt, misreading of the credit reports or closing documentsare being asserted as reasons for pushback. We help Main Street mortgage companies defend against repurchase demands.

An optimistic view is that the mortgage industry will deal with this issue for at least 2 more years. Realistically, it is likely that the high level of pushback will continue for 3 to 5 years, Baker said.

About Scot Baker

Scot D. Baker is Sr. V.P. of Business Development at Pyramid Quality Assurance, a full-service loan analytics firm specializing in Repurchase Defense and Quality Assurance. Mr. Baker has over 20 years of mortgage banking experience. He can be reached at 877.706.5791 X 214 or sbaker.pyramidqa.com.

About Pyramid Quality Assurance.

Pyramid Quality Assurance, LLC http://www.pyramidqa.com/index.html is a full service analytics firm with extensive experience in mortgage industry Quality Assurance programs and Loan Repurchase Defense. Our senior staff have successfully defended Repurchase Defense cases, saving our clients millions of dollars. The company utilizes a comprehensive analytical approach providing easily understood solutions tailored to our clients needs. PQAs process allows our clients to increase efficiencies, leading to increased profits, improved cash flow and lowered loan loss reserves. Pyramid Quality Assurance works with small to large banking and mortgage banking institutions, home builders and investors across the U.S.A.

###







Find More Securitization Press Releases

The Mortgage Industry Secret that Prevents You from Getting a Loan

Reno, NV (PRWEB) September 15, 2010

If your credit is good and youve tried to get a home loan, you may have found yourself in the perplexing position of being told you arent qualifiedeven if you are. Whats going on here? The answer is a secret problem in the mortgage-lending business called Repurchase Demands (loan buy-backs)and they are slowly strangling the industry. Thus, fewer loan products are available for the qualified borrower, says Scot Baker, a mortgage repurchase defense expert.

The problem started with the popping housing bubble in 2007. As the financial system collapsed, so did mortgage loans that had been securitized. This caused a systematic failure at Freddie Mac, Fannie and Ginnie Mae (the sources for FHA and VA loans). Congress demanded that these institutions become solvent after two major bailouts.

Today, Fannie Mae, Freddie Mac, and the Mortgage Insurance Companies are pushing back on loans up to 5 years old to the aggregators (Wells Fargo, Citigroup, Chase, Bank of America, etc.), who in turn are forcing buy-backs on the originators (Main Street mortgage companies). In the first quarter of 2010, these agencies forced lenders to repurchase $ 3.1 billion in mortgages, up 64% from one year earlier. Additionally, Ginnie Mae pushed back $ 15.5 billion in loans in the first quarter 2010 versus $ 4.9 billion in the year ago quarter. To further complicate things, the FDIC is pushing back on loans they inherited from seized banks, most notably Indy Mac.

The effect of loan buybacks is far-reaching and one of the major obstacles to a housing recovery. Repurchase demands have led to fewer lenders, an increase in loan loss reserves, increased overhead to handle the buyback demands, fewer choices for the consumer, and a lack of loan product availability for everyone, especially the self-employed. The overall effect on lenders is to tighten guidelines, a move to more time-consuming underwriting of each file, and a reluctance to take reasonable risks.

The result: You cant get a loan, even if youre qualified.

Most of the trouble with bad loans in the past centered around stated income loans above 80% loan-to-value, loose underwriting guidelines and pricing models that enticed lenders to place borrowers in loans not in the borrowers best interest, Mr. Baker says. However, my company, Pyramid Quality Assurance, sees a large percentage of buy-back demands on loans the originating lender underwrote to the program rules and guidelines in place at the time. Facts arising after the loan originationsuch as job loss, new debt, misreading of the credit reports or closing documentsare being asserted as reasons for pushback. We help Main Street mortgage companies defend against repurchase demands.

An optimistic view is that the mortgage industry will deal with this issue for at least 2 more years. Realistically, it is likely that the high level of pushback will continue for 3 to 5 years, Baker said.

About Scot Baker

Scot D. Baker is Sr. V.P. of Business Development at Pyramid Quality Assurance, a full-service loan analytics firm specializing in Repurchase Defense and Quality Assurance. Mr. Baker has over 20 years of mortgage banking experience. He can be reached at 877.706.5791 X 214 or sbaker.pyramidqa.com.

About Pyramid Quality Assurance.

Pyramid Quality Assurance, LLC http://www.pyramidqa.com/index.html is a full service analytics firm with extensive experience in mortgage industry Quality Assurance programs and Loan Repurchase Defense. Our senior staff have successfully defended Repurchase Defense cases, saving our clients millions of dollars. The company utilizes a comprehensive analytical approach providing easily understood solutions tailored to our clients needs. PQAs process allows our clients to increase efficiencies, leading to increased profits, improved cash flow and lowered loan loss reserves. Pyramid Quality Assurance works with small to large banking and mortgage banking institutions, home builders and investors across the U.S.A.

###







The Mortgage Industry Secret that Prevents You from Getting a Loan

Reno, NV (PRWEB) September 15, 2010

If your credit is good and youve tried to get a home loan, you may have found yourself in the perplexing position of being told you arent qualifiedeven if you are. Whats going on here? The answer is a secret problem in the mortgage-lending business called Repurchase Demands (loan buy-backs)and they are slowly strangling the industry. Thus, fewer loan products are available for the qualified borrower, says Scot Baker, a mortgage repurchase defense expert.

The problem started with the popping housing bubble in 2007. As the financial system collapsed, so did mortgage loans that had been securitized. This caused a systematic failure at Freddie Mac, Fannie and Ginnie Mae (the sources for FHA and VA loans). Congress demanded that these institutions become solvent after two major bailouts.

Today, Fannie Mae, Freddie Mac, and the Mortgage Insurance Companies are pushing back on loans up to 5 years old to the aggregators (Wells Fargo, Citigroup, Chase, Bank of America, etc.), who in turn are forcing buy-backs on the originators (Main Street mortgage companies). In the first quarter of 2010, these agencies forced lenders to repurchase $ 3.1 billion in mortgages, up 64% from one year earlier. Additionally, Ginnie Mae pushed back $ 15.5 billion in loans in the first quarter 2010 versus $ 4.9 billion in the year ago quarter. To further complicate things, the FDIC is pushing back on loans they inherited from seized banks, most notably Indy Mac.

The effect of loan buybacks is far-reaching and one of the major obstacles to a housing recovery. Repurchase demands have led to fewer lenders, an increase in loan loss reserves, increased overhead to handle the buyback demands, fewer choices for the consumer, and a lack of loan product availability for everyone, especially the self-employed. The overall effect on lenders is to tighten guidelines, a move to more time-consuming underwriting of each file, and a reluctance to take reasonable risks.

The result: You cant get a loan, even if youre qualified.

Most of the trouble with bad loans in the past centered around stated income loans above 80% loan-to-value, loose underwriting guidelines and pricing models that enticed lenders to place borrowers in loans not in the borrowers best interest, Mr. Baker says. However, my company, Pyramid Quality Assurance, sees a large percentage of buy-back demands on loans the originating lender underwrote to the program rules and guidelines in place at the time. Facts arising after the loan originationsuch as job loss, new debt, misreading of the credit reports or closing documentsare being asserted as reasons for pushback. We help Main Street mortgage companies defend against repurchase demands.

An optimistic view is that the mortgage industry will deal with this issue for at least 2 more years. Realistically, it is likely that the high level of pushback will continue for 3 to 5 years, Baker said.

About Scot Baker

Scot D. Baker is Sr. V.P. of Business Development at Pyramid Quality Assurance, a full-service loan analytics firm specializing in Repurchase Defense and Quality Assurance. Mr. Baker has over 20 years of mortgage banking experience. He can be reached at 877.706.5791 X 214 or sbaker.pyramidqa.com.

About Pyramid Quality Assurance.

Pyramid Quality Assurance, LLC http://www.pyramidqa.com/index.html is a full service analytics firm with extensive experience in mortgage industry Quality Assurance programs and Loan Repurchase Defense. Our senior staff have successfully defended Repurchase Defense cases, saving our clients millions of dollars. The company utilizes a comprehensive analytical approach providing easily understood solutions tailored to our clients needs. PQAs process allows our clients to increase efficiencies, leading to increased profits, improved cash flow and lowered loan loss reserves. Pyramid Quality Assurance works with small to large banking and mortgage banking institutions, home builders and investors across the U.S.A.

###







Find More Securitization Press Releases

The Mortgage Industry Secret that Prevents You from Getting a Loan

Reno, NV (PRWEB) September 15, 2010

If your credit is good and youve tried to get a home loan, you may have found yourself in the perplexing position of being told you arent qualifiedeven if you are. Whats going on here? The answer is a secret problem in the mortgage-lending business called Repurchase Demands (loan buy-backs)and they are slowly strangling the industry. Thus, fewer loan products are available for the qualified borrower, says Scot Baker, a mortgage repurchase defense expert.

The problem started with the popping housing bubble in 2007. As the financial system collapsed, so did mortgage loans that had been securitized. This caused a systematic failure at Freddie Mac, Fannie and Ginnie Mae (the sources for FHA and VA loans). Congress demanded that these institutions become solvent after two major bailouts.

Today, Fannie Mae, Freddie Mac, and the Mortgage Insurance Companies are pushing back on loans up to 5 years old to the aggregators (Wells Fargo, Citigroup, Chase, Bank of America, etc.), who in turn are forcing buy-backs on the originators (Main Street mortgage companies). In the first quarter of 2010, these agencies forced lenders to repurchase $ 3.1 billion in mortgages, up 64% from one year earlier. Additionally, Ginnie Mae pushed back $ 15.5 billion in loans in the first quarter 2010 versus $ 4.9 billion in the year ago quarter. To further complicate things, the FDIC is pushing back on loans they inherited from seized banks, most notably Indy Mac.

The effect of loan buybacks is far-reaching and one of the major obstacles to a housing recovery. Repurchase demands have led to fewer lenders, an increase in loan loss reserves, increased overhead to handle the buyback demands, fewer choices for the consumer, and a lack of loan product availability for everyone, especially the self-employed. The overall effect on lenders is to tighten guidelines, a move to more time-consuming underwriting of each file, and a reluctance to take reasonable risks.

The result: You cant get a loan, even if youre qualified.

Most of the trouble with bad loans in the past centered around stated income loans above 80% loan-to-value, loose underwriting guidelines and pricing models that enticed lenders to place borrowers in loans not in the borrowers best interest, Mr. Baker says. However, my company, Pyramid Quality Assurance, sees a large percentage of buy-back demands on loans the originating lender underwrote to the program rules and guidelines in place at the time. Facts arising after the loan originationsuch as job loss, new debt, misreading of the credit reports or closing documentsare being asserted as reasons for pushback. We help Main Street mortgage companies defend against repurchase demands.

An optimistic view is that the mortgage industry will deal with this issue for at least 2 more years. Realistically, it is likely that the high level of pushback will continue for 3 to 5 years, Baker said.

About Scot Baker

Scot D. Baker is Sr. V.P. of Business Development at Pyramid Quality Assurance, a full-service loan analytics firm specializing in Repurchase Defense and Quality Assurance. Mr. Baker has over 20 years of mortgage banking experience. He can be reached at 877.706.5791 X 214 or sbaker.pyramidqa.com.

About Pyramid Quality Assurance.

Pyramid Quality Assurance, LLC http://www.pyramidqa.com/index.html is a full service analytics firm with extensive experience in mortgage industry Quality Assurance programs and Loan Repurchase Defense. Our senior staff have successfully defended Repurchase Defense cases, saving our clients millions of dollars. The company utilizes a comprehensive analytical approach providing easily understood solutions tailored to our clients needs. PQAs process allows our clients to increase efficiencies, leading to increased profits, improved cash flow and lowered loan loss reserves. Pyramid Quality Assurance works with small to large banking and mortgage banking institutions, home builders and investors across the U.S.A.

###







Find More Securitization Press Releases

Hackman Capital Affiliate Closes On $5 Million CMBS Loan


Culver City, CA (Vocus/PRWEB) January 26, 2011

Hackman Capital, a privately-held industrial and commercial real estate investment firm, announced today, on behalf of its affiliate, the closing of a $ 5 million loan to permanently finance the acquisition of three creative office buildings in Culver City, California. The office, recording and production studios, totaling 32,248 square feet, are 100% leased by Westwood One. Inc., the country’s largest independent provider of network radio programming and traffic information. The Hackman Capital affiliate acquired the portfolio in an all-cash, sale-leaseback transaction in December 2009.

The non-recourse financing was arranged by Los Angeles based capital markets advisor, Verona Capital Markets(VCM), who obtained the loan from a major Wall Street investment bank. The loan provided 10-year, fixed-rate financing with a 30-year amortization period and a 5.99% coupon. The proceeds of the loan were used to repatriate equity to the sponsor and its investors.

VCM was able to mitigate the risk associated with a single, non-investment grade tenant by highlighting the superior sponsorship behind the transaction, including its track record of operational excellence across its portfolio and its extensive experience in the Culver City submarket, said Eliav Dan, VCM’s managing principal. In addition to highlighting Westwood Ones longstanding occupancy of the buildings and the financial commitment of its majority equity stakeholder, local private equity firm The Gores Group, Dan noted that VCM assuaged the lenders concern regarding a downside scenario by emphasizing the location of the project in reinvigorated downtown Culver City, the fungibility of the buildings, the loan amount relative to land value and the go-dark value of the buildings.

According to Michael Hackman, founder and CEO of Hackman Capital, this deal is yet another example of the the vitality of the Culver City submarket. “One of the west side’s most progressive and rapidly growing areas, and a destination for creative businesses, Culver City is a vibrant community, ” said Hackman. “We are expanding our footprint here for good reasons.”

Hackman Capital, which is based in Los Angeles, has been investing in industrial and office properties since 1986. Although the company and its affiliates have a large national presence, with an existing portfolio including more than 56 buildings and 16 million square feet in markets across the country, the company is proceeding with investment strategies focusing on Southern California and the West Coast.

Of the 13 properties Hackman Capital affiliates already own in Southern California, five are in Culver City. The three Westwood One Studios are located in the Hayden-Higuera district at 8960 Washington (9,668 square feet), 8966 Washington Boulevard (14,780 square feet) and 8944 Lindblade Street (7,980 square feet).

More about Hackman Capital

Hackman Capital specializes in the acquisition, management, redevelopment and adaptive re-use of industrial and office real estate. Founded in 1986, Hackman Capital has acquired or developed more than a billion dollars of property on behalf of the company, various investment funds and institutional clients. The company manages all aspects of the real estate process, from acquisition through asset management and disposition, and offers services including property and asset management, construction management, marketing and leasing, finance and administrative functions, legal, compliance and investor relations. Hackman Capital currently manages for its affiliates a portfolio of more than 16 million square feet, including 56 buildings and 750 acres of developable land. The

company is based in Los Angeles, California.

For more information about the company, please visit http://www.hackmancapital.com

More about Verona Capital Markets Inc.

Verona Capital Markets Inc. is a full service real estate investment banking and capital markets advisory firm based in Los Angeles. VCM specializes in arranging structured debt and equity financing for all types of commercial real estate investments throughout the country and represents financial institutions in connection with the disposition of performing and non-performing notes and REO. In their previous capacities as lenders and lenders counsel, respectively, our principals have been involved in virtually every facet of the securitized lending process, including loan origination, structuring, underwriting and documentation.

For more information about VCM, please visit http://www.veronacapitalmarkets.com.







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