Jeffrey Brown and Adam Rosenblatt left their jobs at Chase Home Mortgage during the financial crisis to join a smaller lender called Preferred Trust Home Loans. They wanted more flexibility and entrepreneurship than a large bank could offer. Preferred Trust focuses on providing loans to buyers of new condos in South Florida. While larger banks retreated from condo lending during the recession, Brown and Rosenblatt see an opportunity as one of the few lenders active in the space. Their former boss at Boca Developers wrote them a strong recommendation, praising Brown's expertise, market knowledge, and ability to close many loans quickly under tight deadlines.
Welcome to the latest edition of Bloomberg Brief: Real Estate focused on the main trends in the residential and commercial markets. In this issue, former FDIC Chief William M. Isaac explains how the latest recovery differs from prior cycles and why the home price rebound has been muted. Fannie Mae’s Tom Seidenstein and Steve Deggendorf outline their expectations for credit standards in residential housing finance, and Bloomberg economist Josh Wright explains why MBS spreads won’t widen much as the Fed reins in purchases and housing agencies trim portfolios.
Then there are what Michelle Meyer, economist at Bank of America Merrill Lynch, refers to as the “Boomerang Borrowers.” These former homeowners who lost houses through a foreclosure or short sale and want to return as owners are finding that credit is harder to get. This in turn could have an impact on demand for new and existing homes. As Meyer points out, nearly 17 percent of all homeowners with a mortgage in 2006 fell into either foreclosure or short sale.
On the residential and commercial real estate finance side, the picture continues to improve. Financing costs for office and retail property borrowers have dropped thanks to lower AAA- and BBB-rated CMBS spreads. Some of the narrowing in CMBS spreads is tied to demand from investors looking for extra yield at a time when U.S. Treasury 10-year debt yields 2.36 percent and the 30-year yields just over 3 percent.
The yield hunt may also explain lower CMBS issuance. According to Jefferies’ Lisa Pendergast, a greater number of investors financed commercial property purchases and retained the loans on their own balance sheets rather than sold them. This forced participants to cut expectations for 2014 CMBS issuance. The appetite to put money to work in commercial real estate finance shows up in other ways, notably heightened use of interest-only and partial IO loans. Just over half of the mortgages resold into CMBS so far this year allowed borrowers to pay just interest, or had partial-IO characteristics.
To receive future Bloomberg Brief Real Estate Supplements please visit- http://www.bloombergbriefs.com/real-estate/
Welcome to the latest edition of Bloomberg Brief: Real Estate focused on the main trends in the residential and commercial markets. In this issue, former FDIC Chief William M. Isaac explains how the latest recovery differs from prior cycles and why the home price rebound has been muted. Fannie Mae’s Tom Seidenstein and Steve Deggendorf outline their expectations for credit standards in residential housing finance, and Bloomberg economist Josh Wright explains why MBS spreads won’t widen much as the Fed reins in purchases and housing agencies trim portfolios.
Then there are what Michelle Meyer, economist at Bank of America Merrill Lynch, refers to as the “Boomerang Borrowers.” These former homeowners who lost houses through a foreclosure or short sale and want to return as owners are finding that credit is harder to get. This in turn could have an impact on demand for new and existing homes. As Meyer points out, nearly 17 percent of all homeowners with a mortgage in 2006 fell into either foreclosure or short sale.
On the residential and commercial real estate finance side, the picture continues to improve. Financing costs for office and retail property borrowers have dropped thanks to lower AAA- and BBB-rated CMBS spreads. Some of the narrowing in CMBS spreads is tied to demand from investors looking for extra yield at a time when U.S. Treasury 10-year debt yields 2.36 percent and the 30-year yields just over 3 percent.
The yield hunt may also explain lower CMBS issuance. According to Jefferies’ Lisa Pendergast, a greater number of investors financed commercial property purchases and retained the loans on their own balance sheets rather than sold them. This forced participants to cut expectations for 2014 CMBS issuance. The appetite to put money to work in commercial real estate finance shows up in other ways, notably heightened use of interest-only and partial IO loans. Just over half of the mortgages resold into CMBS so far this year allowed borrowers to pay just interest, or had partial-IO characteristics.
To receive future Bloomberg Brief Real Estate Supplements please visit- http://www.bloombergbriefs.com/real-estate/
It was the adoption of 'spreadsheet' computing, social-media (print) & reputation marketing (word of mouth) that fueled our mortgage banking growth. Prior to fax machines our 'mobile' strategy comprised the 'new startup' FedEx & an airline ticket. Oh what I could have done with 'digital assets' (an 'online' presence, a NXGen MobiApp & social media) back then! Find out what your digital assets are and how people 'see' you online.
Go Here: http://nxgendigitalmarketing.repgrader.com/socialcapitalreport
TIME Magazine names 25 People To Blame For The Financial CrisisWayne Caswell
Homeowners of Texas (HOT) compiled the following TIME articles to provide insight into causes of the financial crisis. The authors did an outstanding job, but we contend they put too much blame on Wall Street and mortgage-backed derivatives. Some of the nation’s largest homebuilders were culprits too.
With a lack of accountability and minimal risk of lawsuits, the builders’ strong profit incentives prompted them to cut corners with substandard materials and workmanship, cover-up known defects and code violations, artificially inflate property appraisals, make risky loans, and then resell the loans to unsuspecting investors who did not understand the risks. That’s why we say companies building substandard homes share blame with those making subprime loans.
This special supplement includes insight from leading economists and market observers about the future of home sales, what higher rates mean for affordability and what regulatory changes at the U.S. housing agencies will do to long-term fixed rate mortgages. Inside you will also find unique data on commercial mortgage issuance, CMBS loan leverage, mortgage delinquencies and commercial property cap rates, as well as insight into real estate development in Manhattan.
How The Coronavirus Took Down the Mortgage Industry In Less Than 3-WeeksDan Keller
In this 20 page simple slide deck, I explain How The Coronavirus Took Down the Mortgage Industry In Less Than 3-Weeks. This information is for real estate agents, mortgage loan officers, home buyers and sellers wishing to refinance.
It was the adoption of 'spreadsheet' computing, social-media (print) & reputation marketing (word of mouth) that fueled our mortgage banking growth. Prior to fax machines our 'mobile' strategy comprised the 'new startup' FedEx & an airline ticket. Oh what I could have done with 'digital assets' (an 'online' presence, a NXGen MobiApp & social media) back then! Find out what your digital assets are and how people 'see' you online.
Go Here: http://nxgendigitalmarketing.repgrader.com/socialcapitalreport
TIME Magazine names 25 People To Blame For The Financial CrisisWayne Caswell
Homeowners of Texas (HOT) compiled the following TIME articles to provide insight into causes of the financial crisis. The authors did an outstanding job, but we contend they put too much blame on Wall Street and mortgage-backed derivatives. Some of the nation’s largest homebuilders were culprits too.
With a lack of accountability and minimal risk of lawsuits, the builders’ strong profit incentives prompted them to cut corners with substandard materials and workmanship, cover-up known defects and code violations, artificially inflate property appraisals, make risky loans, and then resell the loans to unsuspecting investors who did not understand the risks. That’s why we say companies building substandard homes share blame with those making subprime loans.
This special supplement includes insight from leading economists and market observers about the future of home sales, what higher rates mean for affordability and what regulatory changes at the U.S. housing agencies will do to long-term fixed rate mortgages. Inside you will also find unique data on commercial mortgage issuance, CMBS loan leverage, mortgage delinquencies and commercial property cap rates, as well as insight into real estate development in Manhattan.
How The Coronavirus Took Down the Mortgage Industry In Less Than 3-WeeksDan Keller
In this 20 page simple slide deck, I explain How The Coronavirus Took Down the Mortgage Industry In Less Than 3-Weeks. This information is for real estate agents, mortgage loan officers, home buyers and sellers wishing to refinance.
Hyperion Bank Welcomes David Plummer as Senior Vice President, Commercial Len...
New Penn Letters of Recommendation and Articles
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11. Subject dailybusinessreviewarticle
From JeffreyBrown
To
Sent Monday, August 02, 2010 7:38 AM
JeffreyBrownandAdamRosenblatt:The GreatEscape
Pairboltfrombigbankto be ‘more entrepreneurial’
August02, 2010 By:PaolaIuspa-Abbott
JeffreyBrownandAdamRosenblatt
The foreclosure crisisthatnearlybroughtdownthe nation’sfinancial systemalsohelpedcutshortthe
careersof JeffreyBrownandAdamRosenblattatChase Home Mortgage, a part of financial services
giantJPMorganChase.
Until the creditmarketsfroze in2008, the executiveswere busyprovidingloanstobuyersof condosin
buildingssproutingupacrossMiami. Biglenderslike Chase quicklystoppedfundingthose deals,which
theyconsideredtoorisky.
Ratherthanwaitfor theircareerstobecome a victimof the crisis, Brownand Rosenblattjumpedfrom
one of the world’slargestfinancial institutionstoalittle knowncompanywillingtomake loanstobuyers
of new condosfromMiami to WestPalmBeach.
InNovember2009, the pairwere recruitedbyPreferredTrustHome Loans, a new businessbeing
launchedbyformerCountrywide Financial executiveCharlesRogers.RogersleftCountrywide afterBank
of Americatookoverthe troubledlenderin2008.
PreferredTrustoriginates, processesandunderwritesloansfromaFortLauderdale office.
Brown, 43, and Rosenblatt, 31, headthe firm’sdevelopmentservicesdivision, whichseekstopartner
withcondodeveloperstoprovide financingtothe unitbuyers.
BrownsaidleavingChase — where he workedfortwoyears— forPreferredTrustwasn’tatough
daily business review article
Monday,August 02, 2010
8:08 AM
Daily Business Review Feature Story August 2nd 2010 Page 1
12. BrownsaidleavingChase — where he workedfortwoyears— forPreferredTrustwasn’tatough
decision.
“Now we canbe more entrepreneurial”he said, sittinginthe conference roomof hisnew office three
floorsabove Commercial BoulevardinFortLauderdale.“We have the abilitytoadaptandchange with
the market,whichisveryfluid.”
Eventhoughhisnew employerisastart-up, Brownsaidthe companyisgrowingbecause ithasfew
competitors. The challenge the companyfacesisfindingenoughqualifiedloanoriginatorstoexpandthe
company.ToBrownand Rosenblatt, beingpartof a large financial institutionhaslostitsappeal.
“Inthe past,workingfora large institutional lenderhadavalue,”Rosenblattsaid.“Inthismarket,that
name doesn’tholdmuchcredence anymore.Itisnotasrelevantasitusedto be.”
Formostof 2009, workingat Chase was a struggle, theysaid. Theywere constantlyrunningintowalls
erectedbyloanprocessorsandunderwriters, Brownsaid. “Mortgage productsdisappearedandnew
guidelineswere hurtingthe businessthatwascomingin,”Rosenblattrecalled. “Underwritingissortof
aninterpretingbusiness, andwithpessimism”onthe rise, bankswere quicktosaynoto new loans.
Chase, like mostfinancialinstitutions,wasfacingagrowingnumberof delinquentloansanddidn’tknow
how tostop the bleeding, soitpanicked, Rosenblattsaid.
“Itwas absolute fear, anditwasfrom the topdown,”he added. “The damage wasdone. Andwhenyou
have fearwithoutanykindof mechanismtocontrol it, the fearbecomesirrational. That’swhatwe saw.”
The pairhad anotherreasontoleave Chase. Inthe recession, JPMorganChase shutdownitsretail
mortgage originationofficesandmovedloanofficerslike BrownandRosenblattintobankbranchesto
targetbankcustomers. Mortgagesbecame justanotherproductwhenbefore theyhadbeenaprofitable
stand-alone business.
ToBrownthe change wasunacceptable. He haddevelopedaclientportfoliooverthe yearsbasedon
relationshipswithSouthFloridadevelopers, buildersandreal estate investorsandwasn’twillingtolet
thatgo.
“I don’tneeda bankor a largerinstitutionfeedingme business,”Brownsaid. “I alwaysdeveloped
business. The bankbranchloanofficermodel didn’tfitforme.”
Sowhenhe decideditwastime tomake a move, he was ready— and he’shappyhe didso.
“We are operatinginaspace rightnow where there isn’treallyanycompetition,”Brownsaid.“With
lenders, itisverymuchaherdmentality. Whentheyare excitedaboutanareaor a sector, theyall seem
tomove inthat direction. Butwhentheyare lessexcited, theystarttomove inthe otherdirection.”
PreferredTrustprovidesloanstobuyersof condosat1800 Cluband the OperaTower, bothnorth of
downtownMiami, andThe Lexi inNorthVillage.Otherprojectsinclude LatitudeDelrayBeachandTerra
Beachside VillasinMiami Beach, Rosenblattsaid.
“Ourchallenge isoriginatingloansthathave liquiditytothem, thatthere isanappetite fortheminthe
secondarymarket,”he said. “Sofar, we have beenfortunate.
Daily Business Review Feature Story August 2nd 2010 Page 2
13.
14. Robert M. Smither, Jr. C.F.O.
The Adler Group1400 N.W. 107th
Avenue • Miami, Florida 33172 • Phone: (305) 392-4025
January 15, 2010
Gentlemen,
I was the Chief Financial Officer for Boca Developers during the three years
ending in August 2008. Boca Developers was, at the time, one of the largest
condominium developers in the southeast United States.
With 1200 units being delivered during a twelve month period, it was
imperative that we align ourselves with a mortgage lender that had the capacity and
expertise to close a substantial volume of loans in a short period of time. After an
exhaustive search of the top mortgage bankers in the industry, we selected Jeffrey
Brown, who at the time was employed by JP Morgan Chase.
Mr. Brown and his team worked closely with the executives of Boca
Developers as well as the salespeople from each of our 6 projects throughout the
State of Florida and became a trusted advisor and friend to all. Having been in the
real estate industry for more than 15 years and having worked with hundreds of
individuals in this industry, I can say without any hesitancy that his market
knowledge and expertise within his field are second to none. In each of the projects
he managed, he closed the vast majority of all loans and when other major banks
failed to deliver commitments, he was able to perform and obtain the financing. In
one instance at our Marina Grande Holly Hill project, he literally took a file on a
Friday afternoon and closed it by the end of the day on Monday. I was astounded,
having never seen execution like this ever before.
Even as Chase and the other banks began to redline condo projects
throughout the State, he made sure that the previous commitments issued on files
closed without hesitancy. He is not just an expert in his field, but also a necessary
dogged in his efforts for his clients. Chase as well as the other major lenders stopped
new construction condo lending in the State and as a result, Mr. Brown recently
accepted position with a correspondent lender. Upon seeing the notice, I
immediately contacted him and we have again, opened dialogue. I am not certain
when we will need his services, but am 100% certain that when we need end loans,
either for our business or the partners of the firm, we will absolutely engage him. In
the meantime, we continue to seek to his expertise on market conditions and
general real estate questions.
I am pleased to say that he is among the very best in the industry and a
valuable asset for any partnership.
Sincerely