Wow, wish I shorted New Century (again!). . . NEW has dropped 63% at the time of this post on news of federal criminal investigation into its practices.
I also received an email from my Fremont Investment rep this morning saying they're closing their doors as well.
The "easy money" of the past few years is coming to an end. I, for one, welcome it. I look forward to the weeding out of the uninformed, unscrupulous, and just plain uneducated when it comes to this industry.
I welcome moving towards a day when I don't have to explain to underwriters and account executives how their programs really work and what their guidelines say. I look forward to fewer deals making it all the way to “secondary” before someone decides that loan actually doesn’t meet investor guidelines and that they just may not fund it after all.
Don't get me wrong, I have had the pleasure of dealing with quite a few VERY knowledgeable AE's and underwriters. As I type that…the funny thing is they all are with companies that I don’t think are having the major problems at the moment…. Coincidence? And I’m sure those on the lender side who actually understand the industry will enjoy dealing with originators who are in the game for the long haul.
I do feel for those who will be losing their jobs due to the criminal activities and equally criminal mismanagement of their companies.
Perhaps its a dream, but I'm look forward to a more professional future for our industry as well as a more profitable one for those who choose to take the time do the right thing all along and actually build a solid business rather than chase the easy money.
I'd love to hear your opinions on this.
Updated - As I was writing this I received this in my email.