Tuesday, August 26, 2008

More than Mozillo:

Stories from local mortgage Dukes and Barons. Then ask yourself what has the emperor Moz accumulated or done over the years in Calabasas. Hint: A lot more. Your wealth has been transferred over the years to these guys, and right now it's about complete.

Story #1:
By David Mildenberg
Aug. 26 (Bloomberg) -- Carteret Mortgage Corp., a closely
held mortgage broker that originated more than $4 billion in
loans in 2006, plans to close in several weeks, said Chief
Executive Officer Eric Weinstein.
``We ran out of money,'' Weinstein, 49, said in an interview
today. ``We're not technically out of business yet, but we're
winding it down and trying to do the best we can for everybody.''
More than 100 lenders that have halted loans, closed or sold
themselves over the past 18 months amid the worst housing market
since the Great Depression. Weinstein said the Centreville,
Virginia-based company has about 800 employees, including 40 at
``You should definitely seek other employment immediately,''
Weinstein said in an e-mail today to the employees.
``I would
expect that you have about 30 days to close your loans before it
starts getting bad,'' he said, signing the note ``Eric `Shut the
Lights' Weinstein.''
Foreclosures are expected to hit a record 2.5 million this
year and next, according to the Mortgage Bankers Association,
cutting demand from investors who buy mortgage-backed assets.
Weinstein founded the company in 1995 and expanded to more
than 4,500 employees by 2003 when annual loan volume peaked at
more than $4.7 billion. The company's business model allowed
employees to work from home and earn income by recruiting and
managing other workers, Weinstein said.

Story #2:
JULIE B. HAIRSTONThe Atlanta Journal-ConstitutionPublished on: 03/19/08
The most expensive real estate listing in Georgia has hit the market.
Le Reve, a 90-acre estate on Trammel Road near Cumming, is for sale for a cool $45 million. James Simons, a Realtor with Jenny Pruitt & Associates’s Buckhead office, is handling the sale of Le Reve. He said he will use the brokerage’s affiliation with Christie’s to market the property globally. “We’re going to throw a wide net to see if we can capture someone from around the world,” Simons said.
He also plans to showcase the property locally with a series of events later in the year.Owners Hubert and Norma Humphrey — who are not related to the late vice president — are looking to downsize from the 82-room, 47,000-square-foot home on the property. The couple started building the complex in 2004 after the city of Atlanta denied them a permit to expand their former home on Garman Road. Construction took three years.
Hubert Humphrey is the founder of World Leadership Group, a marketing and mortgage brokerage company.


Kenny Lewis said...


Greenie said...

Hey Mr. Spy, did you forget about this chart?


MTGSPY said...

How should I interpret this chart? I am still a little novice taking ratios on STOCKS :D

LTV is about as advanced as I get when it comes to ratios. Please explain for my benefit and others who stumbled here. Thanks!

Greenie said...

It suggests that whatever back room games was holding those two unrelated quantities together is now over. We are ready to proceed to the next stage - for both dollar and NDX. Also check when NDX and USD got joined in the hip - right around July bottom.

Anonymous said...

Zion, another loser pick

MTGSPY said...

in chronological order:

entered at 2008-07-14 13:28:40

entered at 2008-07-16 10:15:09

entered at 2008-07-16 20:34:08

entered at 2008-07-31 21:47:43

disclosure: 7/16 Stop costed $5k and change. :)

Still short a moderate amount with a gain from 8/1 level.

I'll see you all at ZION $5.

Bear Market Rally = cost of doing business and so far it costs me NOTHING for this particular stock. Enjoy.