If you are a sick individual, as I must be, you have all 3 C-SPAN cable channels going all day, Bloomberg on Satellite and your web browser pointed toward the WSJ. Just typing that makes me want to go wash my hands.
Today's action word is illiquidity. It is not, by any means a new word, just that the market has increased the use of the word over the last several months until today. Today it is in the mouths of even congressmen who have poor control of the English language. One "gentleman" from Massachusetts is bringing me a slight chuckle every time he attempts it.
But why is it in the news and, more importantly, how does it affect me, Ken Cook.
For the past several months my call to close ratio has gone from about 10 calls to one close to about 20 calls to one close. These are inbound calls and not applications. We are currently closing a horrendous 1 in 11 from applications (online, inhouse, phone, etc.). Now to put it into perspective we have long specialized in challenging transactions. The focus of our business is real estate investors as buyer and seller. So we have always contended with things like title seasoning, condition of property and alternative credit.
On the other hand, to keep it in perspective, Lower My Bills, a seller of self-generated mortgage leads, tells me their average is 1 close in 33 leads so all in all we are doing okay. It's just that calls are down by 60%. Which brings me right back to the word of the day, illiquidity.
What the Administration did today was accepted on Wall Street but certainly will be funded by Main Street unless and until Wall Street repays. Dare we place a mark at 4 years from today and revisit to see (a) how much this ends up costing and (b) how much of it has been returned.
In case you don't know what I am talking about watch this press conference from the Whitehouse and do a little research on it.
Do I think it was needed? No, I think we should have let the economy crash. But then I am a gardner, fisherman and hunter and I live in somewhat of a compound. Am I kidding? No. I believe we should have let it play out. No I am NOT a Marxist - no am I a Weberian. I believe in PERSONAL responsibility and in delivering the consequences where it is due.
But Ken, if we let the GSE's and AIG and the other banking and financial institutes fail it will cause mass failure of the global economy. THAT'S RIGHT! IT WOULD! And by God it would be a long time before the neo-genii made, or were allowed to make the mistakes again. THIS ONLY PROVES THE IGNORANCE OF THE PEOPLE AND THE GREED OF THE FEW MAKES FOR A BAD SCENARIO.
They keep calling it "the perfect storm" and I'm about to puke from hearing those words.
I have always and will always continue to shout that EDUCATION is the lasting answer and LEGISLATION is the lasting cost. So, once again, the American citizens who have been cautious with their investments and concerned about making their payments on time are on the flag pole in their skivvies paying the price for LACKADAISICAL LEADERSHIP (House and Senate not withstanding), UNEDUCATED CITIZENRY (and too lazy to give a crap) and USELESS EXISTING REGULATIONS NEVER ENFORCED.
So here is what I aim to do: Take the money and run. Hey, I didn't make this mess and even though I can fix it that is not my job! So, for the next several months I am going to close as many loans as I can. Buying or selling in Georgia or Florida? That's my neighborhood. Countrywide doesn't care about you, Wells Fargo doesn't care about you, Ditech's parent just spit on you. If you are in need of real estate financing in Georgia or Florida call me. You want to talk politics? Okay, but just call me.
I am hanging up my bid for the Presidency.
See you at the polls in November. I dare you to vote for inexperience in a time like this.(Unless you spend at least 4 hours a day studying politics, reading the Congressional minutes and watching C-SPAN - don't bother to try and convince me Barack Obama is not the worst of all the choices. Unless you like higher taxes and more regulation.)
THE OPINIONS IN THIS COMMENTARY ARE STRICTLY KEN COOK's PERSONAL OPINION AND NOT REFLECTIVE ON ACTIVE RAIN, NOVATION MORTGAGE, or ANY SPONSOR OF THIS WEBSITE.
EDUCATION BEATS LEGISLATION EVERY TIME. Get your clients, friends and family members to a LENDER RUN home mortgage seminar as soon as possible.
Copyright©2008 Ken Cook. Georgia and Florida real estate investment loans, FHASecure and FHA Home Loans, nationwide commercial hard money and small business loans, non-recourse loans for real estate investors
Novation Mortgage, 2501 E Piedmont Road, Suite 201, Marietta, GA 30062 Georgia Residential Mortgage Licensee 20014. Florida Mortgage Broker Business MBB 0703760 FHA Lender - Equal Housing Lender
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