  Livernoisyard Member Username: Livernoisyard Post Number: 3666 Registered: 10-2004 |
quote: Inform us (truthfully and to the best of your knowledge). What percentage of their direct loans are kept by QL and not sold on the secondary market? | ||
Kid_dynamite Member Username: Kid_dynamite Post Number: 176 Registered: 06-2007 |
A very small amount. QL funds all of its loans that it originates, initially. The majority are later sold to a different servicer. That is in contrast to a broker, who finds borrowers and connects them to a lender to fund the loan. A broker never actually has any ownership to the loan. QL usually holds on to the loan for 1-6 months (occasionally a lot longer). | ||
Dsmith Member Username: Dsmith Post Number: 122 Registered: 07-2005 |
QL can also be forced to buy back loan portfolios that have high initial defaults. One or two big portfolio defaults have been enough to crush many mortgage originators, I don't see how QL is any different. As far as JZ_Detroit's 'Exclusive Products' statement, he's simply wrong. The game has changed, check this out: http://bigpicture.typepad.com/ The following comes from a major U.S. mortgage writer. It is typical of what has been going on in the mortgage business over the past few days: As you are probably aware, the mortgage industry is going through a major disruption. In response to these market conditions and to enable ******* to continue to serve our customers; we have made changes to our loan eligibility, appraisal rates and repricing of loans in the pipeline. Rate exceptions by AE's will no longer be allowed Only full doc loans allowed No Non OO (Owner Occupied) and second homes allowed Increased disposable income requirements on D/R's > 50% from $2000 to $3000 No refinances of Vacant Properties No refinances of properties listed for sale in the last 3 months Limited ltv's on homes listed for sale > than 3 mos but less than 6mos for cash out refi's Loans in the pipeline will be repriced according to the current rate sheet unless they are in '"docs out" status or are Purchase transaction types in "Conditional Approval" All loans in the pipeline that are NOT O/O Full Doc must fund by August 17 Appraisals must be less than 90 days old Appraisals must contain 1 comp sale< 3mos old and 1 current listing. All other comps provided must be < 6mos old Thank you for your understanding; we realize the impact this will have on you and your customers however in order to continue to stay in business we felt it necessary to make these unfortunate changes. | ||
Livernoisyard Member Username: Livernoisyard Post Number: 3667 Registered: 10-2004 |
I was a RE broker in WI during the 1970/80s. Brokers can buy/sell on their own accounts or bring buyers/sellers together (the typical scenario). QL eventually sells its instruments to others. So, they're essentially brokers in that they originate loans (and may service them afterwards--albeit, only temporarily in their case). BTW, I wasn't implying that any of that was being anyhow dishonest or unethical. That's just how businesses are run. Still, some companies in the mortgage business--GM, Ford, etc--own their own corporate real estate, and QL, being more directly involved, percentage-wise, in the mortgage business, doesn't. Just an observation... | ||
Izzadore Member Username: Izzadore Post Number: 61 Registered: 11-2006 |
So is quicken a Originator that services, or a Servicer? Or Both? Let's keep in mind that there is a difference between servicing and actually funding a mortgage. 1) There are 'servicers' that collect money and pass it on to the lender (less their servicing fee.) 2) There are the Lenders that hold the actual note that's being serviced. | ||
Detroitrulez Member Username: Detroitrulez Post Number: 334 Registered: 12-2006 |
quote: The big problem is that the secondary market to sell these has dried up. People also need to keep in mind that this is not a sub-prime problem. Alt-A lenders are also having serious problems, as evidenced by recent filings. the problem is in the ARM's and exotic mortgages. I met with a VP and Associate Director of Research at the FedReserve today. It is clear that the housing market nationwide is in a serious, serious crisis. It is also clear that all signs and historical indicators point to a recession. Don't look for an announcement any time soon. | ||
Livernoisyard Member Username: Livernoisyard Post Number: 3669 Registered: 10-2004 |
Dsmith: Is Kudlow & Company on your reference in this thread the same Kudlow who was a regular guest on the John Batchelor radio show nightly on WABC until Batchelor got the axe last year? Batchelor was my usual radio nightly listening. I sense that he's the same Kudlow. He appeared to be quite knowledgeable in many areas of the economy. | ||
Scottr Member Username: Scottr Post Number: 689 Registered: 07-2006 |
quote:I'd be a lot more willing to accept that conclusion if Quicken Loans was a public company. But they aren't, and that makes it a whole different ballgame. There's nothing stopping Gilbert from reinvesting money he's made from the Cavaliers or any of his other businesses back into Quicken Loans. There's no shareholders demanding their cut, no stock price to be a slave to. And yeah, he's a savvy businessman, and that's why he will still strongly consider a move, even with the market being what it is, because which would be cheaper, maintaining the lease in Livonia, or building his own in Detroit, with the incentives that are sure to come? Someone said something (it seems to be gone now) about there being no employee events planned for the next couple months, and that employees are told first, using the example of flying the company out to cleveland to announce the arena changing names... Now, I wouldn't know personally, but it would seem to me that anyone who would do that sort of thing, would not be above chartering a bunch of buses one afternoon and shipping the company down to the Fox to make an announcement. Knowing the amount of speculation going on, if i were him, i wouldn't let any plans be known ahead of time either, not if i wanted it to be a surprise. I wouldn't use that to rule anything out quite yet... | ||
3rdworldcity Member Username: 3rdworldcity Post Number: 852 Registered: 01-2005 |
Scottr makes a very valid and important point. The fate of Quicken will probably depend on whether Gilbert has a long range view and is willing or able to inject more money into the company. I've said for years that based on my experience and on conversations with friends in the mortgage banking business, Quicken is a very high cost relatively low profit business. But as Scottr points out, because it's a private company it's impossible for an outsider to get a real handle on its finances. What should be indisputable now though is that Quicken is being battered by the whole mortgage mess, which is adversely affecting all lenders. Quicken sells all or most of its mortgages to Countrywide, which packages them and sells them to Wall Street where they are bundled and sold as mortgage-backed securities. Countrywide announced today that it is almost doubling its reserves for loan losses from what they were at year end. It's safe to say Quicken no longer has a market for any loans it may want to make. It could go to Fanny Mae I suppose but it would have to change the nature of its business by retaining servicing, which would be like setting up a different business than solely making and selling loans, with less upfront revenue and profit. And the question is, is there enough conventional mortgage business around to sustain the company. Not without seriously downsizing, I'd say. As Countrywide goes, it's fair to assume Quicken is going or has gone. The issue now is whether Gilbert has the money or the willingness to shore up Quicken. He may have the money and he may be willing to do that, and is probably far more motivated to do so that the people who are running public companies and own a relatively small amount of the stock. Another issue is whether Gilbert will receive any backing from banks etc with whom he will surely have to deal, and will be very tough. I doubt very much if Quicken will move to Detroit now or for a long time. On the other hand, depending on how much money he has, Gilbert may have a saviour complex - to save the City - which supercedes good business judgment and common sense. One can hope. | ||
Izzadore Member Username: Izzadore Post Number: 62 Registered: 11-2006 |
3rd, Sadly you are correct. I have three friends who are trying to get financing for their first house . They have jumped through hoops and done everything they could do (like have multiple phone verifications with underwriter's) but just this week they were all told that their loan package would have to go under review before it could fund. Out here, Chicago title is laying off or furloughing personnel (including legal counsel) (we're not just talking clerks here.) It doesn't look good at all for ANY lender as most lenders have exposure to mortgages... Just think. when this thread started (850 posts ago) there was no question about Quicken's vitality as a company. Now it really is a possibility (how much of which, nobody knows, but still you can't ignore the 'white elephant') that Quicken won't be around in as little as three months from now. This reminds me of when I was at Andersen Worldwide, the only difference is this is happening to an entire industry... | ||
3rdworldcity Member Username: 3rdworldcity Post Number: 854 Registered: 01-2005 |
Izzadore: I hope Tom S at Greco (Chi Title) is not one of them. | ||
Quinn Member Username: Quinn Post Number: 1432 Registered: 01-2005 |
I refer to my earlier post. GEESH. Slit your wrists why don't you? | ||
Izzadore Member Username: Izzadore Post Number: 63 Registered: 11-2006 |
That name is not familiar. My own legal counsel (after three closings) started working for Chi Title after her personal business dried up... She told me that she was getting back into the public sector because the 'writing was on the wall.' | ||
Charlottepaul Member Username: Charlottepaul Post Number: 1387 Registered: 10-2006 |
FYI, a great web site for the inside information on sub prime mortgage lenders: http://ml-implode.com/ It has a listing of all the companies that have failed in about the last year as well as listing ones that are likely to fail. Of course QL isn't on the list since they are doing well. | ||
3rdworldcity Member Username: 3rdworldcity Post Number: 857 Registered: 01-2005 |
Charlottepaul: Of course. | ||
Quozl Member Username: Quozl Post Number: 1160 Registered: 07-2005 |
No word yet on the downtown Detroit relocation? | ||
Scs100 Member Username: Scs100 Post Number: 1383 Registered: 12-2006 |
Nope. | ||
Jasoncw Member Username: Jasoncw Post Number: 421 Registered: 07-2005 |
If there was it would be posted here. | ||
Quinn Member Username: Quinn Post Number: 1434 Registered: 01-2005 |
And 3rdwrld/Detroitrulez (etal.) coming down with a negative story about Quicken's demise in 3, 2, 1... Doom and gloom doom and gloom. | ||
Ffdfd Member Username: Ffdfd Post Number: 138 Registered: 09-2006 |
A little birdie told me the Silverdome property recently entered the discussion in a serious way. It would be nice to see some movement on redeveloping two former homes for the Lions (Ernie Harwell with Tiger Stadium and Dan Gilbert with the Silverdome). | ||
Bussey Member Username: Bussey Post Number: 558 Registered: 12-2003 |
Oh no, here we go.....! | ||
Bumble Member Username: Bumble Post Number: 304 Registered: 11-2004 |
Did I miss an announcement over the weekend? Update anyone? | ||
Johnlodge Member Username: Johnlodge Post Number: 1700 Registered: 10-2003 |
Ffdfd, you are completely making that up. That's my guess. ;) | ||
Mdoyle Member Username: Mdoyle Post Number: 171 Registered: 10-2006 |
Ffdfd, yep and I heard belle isle was also under consideration. | ||
Thejesus Member Username: Thejesus Post Number: 1829 Registered: 06-2006 |
Bumble: No announcement, but I think consensus is that no one is really expecting one like we were a month ago given everything that's going on in the mortgage industry right now. That's not to say it won't happen, but it's looking at least like it might not happen in the immediate future. | ||
Ffdfd Member Username: Ffdfd Post Number: 139 Registered: 09-2006 |
Johnlodge, you are correct, sir!  | ||
Johnlodge Member Username: Johnlodge Post Number: 1701 Registered: 10-2003 |
Awwwww, Phil. :,( | ||
Jt1 Member Username: Jt1 Post Number: 9798 Registered: 10-2003 |
quote: I appreciate 3rd's insights. He obviously understand the business and the industry. While sometimes his posts aren't the rosiest I respect his opinions and knowledge. If his posts are down I wouldn't blacme the messenger. I appreciate his posts, even those that explain sad realities. | ||
Quinn Member Username: Quinn Post Number: 1435 Registered: 01-2005 |
JT1, and 3rdworld, I find that although his posts may be based initially in fact, pick out the negative. Maybe it's his screenname that bugs me...says it all about how he feels about Detroit. | ||
Jasoncw Member Username: Jasoncw Post Number: 423 Registered: 07-2005 |
I haven't found 3rdworldcity's posts to be especially negative. I don't think there is a positive way to spin what he talks about. He usually talks about downtown's office market, which really is doing bad. And I don't really like his username either, but calling Detroit a 3rd world city is not a stretch at all. |
