Anyone ever see anything like this?

[danielson]

 

 

December 5, 2006

 

To All Ownit Mortgage Solutions Friends and Partners in Business,

 

It is with deep regret that we inform you Ownit Mortgage Solutions will cease operations on December 6, 2006.  For the past three years, we have pursued a mission to influence the mortgage industry toward increased affordability options for a changing market of home buyers.  Change takes time, and we are saddened that the current unfavorable conditions of the mortgage industry did not afford us sufficient time to see our mission through.

 

We have been blessed with the opportunity to work with you over the past three years, and we wish each and every one of you success in your endeavors.  We look forward to future opportunities to work with you again.  Provided below are regional contacts for loan status:





That was the email we(mortgage company I work for) just received. Wtf? Due to the fact that they had super aggressive(easy to qualify) programs they were our main non-conforming bank. I have 3 loans submitted to them right now, including a closing scheduled for Thursday, no to mention at least a dozen other loans submitted to them from people I work with. How the fuck does a bank just "cease operations" on a 1 day notice? I have heard of shit like this, but I can't believe I have to call my client tomorrow and say, "yeah, you know how you were going to skip December and January's payment and pull 8 grand out? Well, sorry the bank closed and with a 560 mid score, stated income, no other bank will touch your loan. Merry Christmas "  I can't believe this is legal to do

[Dos Equis]

Spam?  Looks like their web site is still up?

[240 is Back]

danielson, the mortgage industy is gonna collapse next year.  american homes are NOT what they are selling for.  A lot of people will be very upside down in a year.

[Ron]

Wow - that is incredibly insane.

I am going through a purchase of a home now - it is incredible regarding home loans. In California, sales are down 30%, which means 30% less real estate agents, mortgage brokers, and so on are getting business these days.

Still, even when one promises you everything, they still look at everything possible.

And it is pretty stressful, as people know when they purchase a home, with all of the contracts.

[Alex23]

danielson, the mortgage industy is gonna collapse next year.  american homes are NOT what they are selling for.  A lot of people will be very upside down in a year.

Big time, it's not even funny. I'm relocating from the Bay Area to San Diego area in a couple of weeks and just closed the escrow on a foreclosure in San Marcos. Used to be on the market in the low 700's and couldn't beleive how low we got it for.

The defaulting accounts are up 500% in the SD county. Keep in mind over there they had the biggest run up; 120% is quite common. The house I bought lost 67k in value and the guy had a "no down, interest only ARM" kinda loan and when the value goes beyond a certain level, contractually the bank will ask for principal to cover the loan vs valuation. The couldn't pay the run down (I think it was like 30k)

The bank must've lost over 200k on this one...

[240 is Back]

I'm selling a TON of websites to real estate guys the last 2 months.  They need an edge. business used to just fall on them.  Now they're actually competing with each other.

US homes have been selling for a lot more than they're worth for the last 4 years.  Everything evens out.

[Dos Equis]

Prices have dropped in Hawaii and the market has slowed.  But I talked to a local economist he predicts the market (at least in Hawaii) go sideways and then there will be gradual growth. 

[danielson]

Ownit mortgage actually only sent that email out to us brokers and not even to its own employees. Our processor actually called our account executive as he was going to work and told him about it. They were all told to leave and they would not be getting paid even for the time they were there, commissions owed etc. Most fucked up thing is that if a loan had closed and not funded yet(3 day rescission period in Michigan on re-fi's), the loans were null and void. Nice way to run a company, huh?

[240 is Back]

Prices have dropped in Hawaii and the market has slowed.  But I talked to a local economist he predicts the market (at least in Hawaii) go sideways and then there will be gradual growth. 

In florida they said that a year ago.  Every real estate agent I've spoken to for the last year has said "oh yeah, it hit bottom, on its way back up" but I think they are incorrect.  Some analysts believe that homes are way overvalued, and that it is time for things to level out.  I know it's prob hard for any homeowners here to accept it.  You couldn't pay me to buy my dream home at the moment.  *(well yes, you could, but...)

[Dos Equis]

In florida they said that a year ago.  Every real estate agent I've spoken to for the last year has said "oh yeah, it hit bottom, on its way back up" but I think they are incorrect.  Some analysts believe that homes are way overvalued, and that it is time for things to level out.  I know it's prob hard for any homeowners here to accept it.  You couldn't pay me to buy my dream home at the moment.  *(well yes, you could, but...)

Depending on where you live, real estate is the best investment in America.  I live on an island, so it will always be a premium.  Prices doubled in less than four years.  I think the market is inflated here, but it will eventually correct itself and then increase over time.  Always happens. 

Then are places like Oklahoma.  Friends of mine own "investment" property there and cannot give it away.  I think places like California and Florida are prime spots.  You'll always have people moving there.  Land will always be in high demand. 

[240 is Back]

in FL, not anymore.  In 2002-2003, they put in water and power infrastructure, along with highways, in a lot of rural areas.  They build houses as fast as they could, which sold fast at high prices.  Then, the second wave of houses came - and that's when the bubble burst.

Originally existing homes, the 02/03 batches, and the new ones all had instantly lowered prices.  The population is growing, but certainly not as fast as the housing industry.  Everyone and their mother bought a new house with Wave 1 - now they're 60 k to 100,000 upside down and won't even begin chipping off the worth from the mortgage for ten years. 

IMO, it's like koolaid.

yes, koolaid.  The more water you add, the less that koolaid is worth.  One packet in on pitcher = small number of homes in Lee Country.  One packet split between three pitchers, and suddenly the koolaid is weak, there's too much of it, and it ain't selling. 

[Dos Equis]

I have not looked at the trends in Florida, but I would be surprised if prices have not increased over the past 10-20 years.  It doesn't really matter what prices do in the short term when you're talking about property.  We had a dip about 6 years ago and many people were upside down.  Foreclosures skyrocketed.  That's actually the perfect time to invest.  Prices always increase over the long haul here. 

If I lived in Florida I'd be jumping all over investment property right now. 

[240 is Back]

If I lived in Florida I'd be jumping all over investment property right now. 

Nope. We had a TON of undeveloped rural land.  It all got developed in the last 3 years.  Prices for ew homes have dropped 10 to 30% from 2002, and are continuing to drop.  I'm holding off on buying the dream home until prices bottom out.  And if I'm correct in my belief that the economy is going to take a big hit, THAT is when I'll buy. 

[JediKnight]

Yo Danielson,,how about refering those loans to me over here in California..we will give you a referral fee for each one.

[danielson]

Yo Danielson,,how about refering those loans to me over here in California..we will give you a referral fee for each one.

No thanks. I am getting all of mine done. AE's from other companies flooded our office the next day and started dropping conditions and making exceptions(on loans submitted to own it only) to make sure all of our ownit loans will close. A bit of a setback and maybe a half point less in some of the deals, but the are getting done. Thanks anyway.

[UPINTHEMGUTS]

danielson, the mortgage industy is gonna collapse next year.  american homes are NOT what they are selling for.  A lot of people will be very upside down in a year.

For home purchasing and selling, maybe. For the refinance market, I disagree. The feds, while claiming they have inflation under control, will make a rate cut by March 2007 and maybe a second cut during the last quarter. The household mortgage company names that have been in business the last ten years or longer will thrive under an increase of mortgage refinance applications. A lot of mom and pop shops that have opened in the last few years when rates hit historic lows have long since folded due to the last year's rise in interest rates. The big boys will forge ahead and prosper while the smaller companies and indepedent businesses will again re appear when another small boom starts. It's on ongoing cycle.

There will always be a market for home equity refinancing. People spend more than they make on average in this country.

[Migs]

Jesus, that really sucks.  i am a real estate agent in Atlanta and I would be pissed if that happened to me.  I serisouly don't know why they can't fulfill their obligations on existing loans.  New loans in the pre-qual phase is okay since you can still shop around, but when you have scheduled closings only days away, inexcusable.

[danielson]

Jesus, that really sucks.  i am a real estate agent in Atlanta and I would be pissed if that happened to me.  I serisouly don't know why they can't fulfill their obligations on existing loans.  New loans in the pre-qual phase is okay since you can still shop around, but when you have scheduled closings only days away, inexcusable.

They were owned by Merril Lynch and that day the bigwigs just came down and said no more loans for you. They were shut down immediately. I agree that it is inexcusable, but it's a crazy market here in Michigan. I feel bad for Ownit employees though.

[Migs]

I feel bad too.  I'm surprised Merril would pull it like that without having some contigency plan in place to see active loands go through.  I can only imagine how many people are scarambling to get loans pushed through iwth other companies.  It espeically sucks with those that have not so great middle credit scores. 

[24KT]

They were owned by Merril Lynch and that day the bigwigs just came down and said no more loans for you. They were shut down immediately. I agree that it is inexcusable, but it's a crazy market here in Michigan. I feel bad for Ownit employees though.

Wow Danielson,

Sorry to hear that happened to you. I've seen many similar type experiences happen to alot of people over the years.

One company had a ton of gas brokers acquiring accounts for large and mid-sized natural gas users. One day they walked into the office and found a fax sitting in the machine saying, we don't need you anymore.  Just thrown away and discarded like yesterdays rubbish. They were able to turn it around though, by tapping into a market that no one had even bothered to touch. They knew it wasn't only large corporations that wanted to save money on their natural gas, ...but that individual homeowners who heated their homes with natural gas would also want to save. No one was giving them a break. That initial setback, sparked a flash of brilliance, and they decided to provide those saving to individual homeowners. They knew they would need a literal army to get the job done tho, ...but guess what? Right about this time, there was a huge economic recession taking place. The manufacturing sector in our country had been hit hard, and there were a ton of people losing their jobs, factories closing down, layoffs left, right, and centre. This convergence of factors made for an opportunity that provided a win/win/win scenario for everyone concerned. They were able to remain in business, infact owning an entire market segment, while providing jobs for so many people who had been left out of work due to upheavals in the economy. Sometimes the bleakest moments, are actually the beginning moments of what could be our greatest triumphs.

[danielson]

Wow Danielson,

Sorry to hear that happened to you. I've seen many similar type experiences happen to alot of people over the years.

Thanks, but everything worked out ok for me. First Franklin made some exceptions to make sure mine are going to close, as far as the 100's of other loans from other brokers, I am sure many people got screwed. Bad business if you ask me.