How to Buy and Sell Notes Non Performing Mortgages Discounted Mortgages Note Buying Profits.com
Upcoming SlideShare
Loading in...5
×
 

How to Buy and Sell Notes Non Performing Mortgages Discounted Mortgages Note Buying Profits.com

on

  • 3,923 views

http://www.NoteBuyingProfits.com No-nonsense Note Buying Information. Up-to-date! Hours of FREE Note Buying Training Videos. FREE 1-on-1 Coaching Session. Click or Call 718-783-7605

http://www.NoteBuyingProfits.com No-nonsense Note Buying Information. Up-to-date! Hours of FREE Note Buying Training Videos. FREE 1-on-1 Coaching Session. Click or Call 718-783-7605

Statistics

Views

Total Views
3,923
Views on SlideShare
3,912
Embed Views
11

Actions

Likes
1
Downloads
35
Comments
0

2 Embeds 11

http://www.slideshare.net 8
http://www.e-presentations.us 3

Accessibility

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    How to Buy and Sell Notes Non Performing Mortgages Discounted Mortgages Note Buying Profits.com How to Buy and Sell Notes Non Performing Mortgages Discounted Mortgages Note Buying Profits.com Presentation Transcript

    • Licensing and the Market Notes and Insight to Make you a Better Buyer 1
    • Objectives for this Session • Introduction to Licensing: GA and CA examples • Licensing examples: CA and GA • Licensing – some basic points • The market – a current overview • Macro picture • Loan sales 2
    • Licensing All the answers aren’t in one place … • Problems with “advice” across states • 1/3 of states • Attorney input/advice vs. actual licensing support • Exceptions • Regulatory environment changing, emergence of a “clearinghouse” for licensing registration: NMLS www.stateregulatoryregistry.org (follow links for NMLS) 3
    • Licensing takeaways Learn what’s required in your state • Loans are bought ALL the time by people and companies without licenses … • But doing so is illegal in states that regulate note buying • “Will I get caught?” vs. “How much does it cost and what does it take?” 4
    • States with Readily Available Licensing Info (NMLS) • Arizona • Mississippi • Arkansas • Nebraska • Connecticut • New Hampshire • Delaware • New York • Georgia • North Carolina • Idaho • North Dakota • Indiana DFI • Pennsylvania • Indiana SOS • Puerto Rico • Iowa • South Dakota • Kentucky • Rhode Island • Louisiana • Tennessee • Maryland • Vermont • Massachusetts • Washington • Michigan • Wyoming 5
    • The Market - Rally & Hope At 1998 levels now 6
    • Have we hit Bottom Yet? Now [Sacramento] seems to be in the earliest stages of a recovery… Sales in Las Vegas in March, for example, rose 35 percent from last year. New York Times, May 4, 2009 7
    • US New Home Sales March 2009 – lowest since 1963 8
    • Unemployment – Still Growing No Slowdown in Job Losses 9
    • John Mauldin @ Investor Insight 5/11/09 Part of the reason we are so challenged in our outlook is that we are experiencing a deleveraging on a scale in the world that is absolutely breath- taking in its scope. And to balance that, governments are going to have to issue massive amounts of sovereign debt to deal with their deficits. But who will buy it, and at what price? And in which currency? 10
    • US Deficit Shortfall Assuming $0 in Jan. 2008 Cumulative Deficit Since Jan. 2008 200,000 0 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 -200,000 -400,000 -600,000 -800,000 -1,000,000 -1,200,000 -1,400,000 7 straight months deficit growth 11
    • US “Income” (last 28 Aprils – traditionally + months) US Deficit/Surplus (-) 250,000 200,000 150,000 100,000 50,000 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 8 8 8 8 8 8 8 8 8 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 0 0 0 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 20 20 20 20 20 20 20 20 20 20 -50,000 First shortfall since 1983 12
    • Home Prices Still Dropping I expect another 15-30% Drop 13
    • FASB 160 and Accounting The IMF reckons that both European and US banks - but in particular the European ones - are well behind the curve in terms of recognizing their credit crunch related losses. According to the IMF, there is at least another $1,500 billion to come. So when the US banks reported surprisingly good numbers for Q1 it was certainly not because the economy had suddenly and miraculously revived itself, but because some of the oldest tricks in the book were used to gloss over much bigger problems. Absolute Return Letter, May 2009 (www.arpllp.com) 14
    • Foreclosures – Climbing Still (CA example) Many lenders re-initiated foreclosure proceedings after March 31, 2009 (the “holiday homeowner break”) Source: MDA Dataquick, April 22, 2009 15
    • Default Rates by Bank as an FYI Institutions with highest default rates for loans originated in August to November 2006: • ResMAE Mortgage 69.9% of loans w/NOD’s) • Master Financial 64.6% • Ownit 63.6% • IndyMac default rate of 18.9% • World Savings 8.0% • Countrywide 7.7% • Washington Mutual 6.3% • Wells Fargo 3.4% • Citibank <1% in default • B of A <1% in default Source: MDA Dataquick, April 22, 2009 16
    • The Market: Loan Sales Sales and Pricing Trends: • PPIP – market slowdown since 12/08 • Uncertainty on pricing: WL Ross (10%); Morgan Stanley – DB – CSFB (3-7%) • Hold mentality amongst larger institutions • Smaller institutions still hitting quarterly and monthly recovery targets • Consolidation: larger trading platforms (Milestone, First Financial, DebtX) • Rise of the small aggregators: BigBidder / Loanmarket 17
    • Tips on Sourcing Regional banks Loan-level is good Bankruptcy trustees and liquidators (Resmae / Ownit / AHM) Build relationships now – buying opportunities will increase through the year Don’t assume 1 trade = forever deal flow Follow-up, follow-up, follow-up 18
    • Next Session: May 27 5pm PT / 8pm ET Due diligence basics – a step-by-step analysis 19