Another one bites the dust - OwnIt Mortgage
First off, OwnIt Mortgage went down faster than a Pamela Anderson marriage. It appears that their website is already shut down... www.ownitmortgage.com I remember when this company hit the market, and now I got to see it go full circle. Here you go:
From: OwnIt Mortgage Solutions [mailto:email@example.com]
Sent: Tuesday, December 05, 2006 4:26 PM
Subject: Ownit Mortgage Solutions is Closing Its Doors
To view this email as a web page, go here.
December 5, 2006
To All Ownit Mortgage Solutions Friends and Partners in Business,
It is with deep regret that we inform you Ownit Mortgage Solutions will cease operations on December 6, 2006. For the past three years, we have pursued a mission to influence the mortgage industry toward increased affordability options for a changing market of home buyers. Change takes time, and we are saddened that the current unfavorable conditions of the mortgage industry did not afford us sufficient time to see our mission through.
We have been blessed with the opportunity to work with you over the past three years, and we wish each and every one of you success in your endeavors. We look forward to future opportunities to work with you again. Provided below are regional contacts for loan status: (I removed the contact info - SCMG)
Ownit Mortgage Solutions . 27349 Agoura Road, Agoura Hills, CA . 877-443-0405
This email was sent by: OwnIt Mortgage Solutions
27349 Agoura Road Suite 100 Agoura Hills, CA 91301 USA
What I find really interesting is how this company, and the whole RE industry as a whole thinks they are doing people a favor by adding more 'affordability options'. It is really simple...you either have, or make enough to afford something, or you don't.
I can't afford a new Ferrari F430 with the Novitec Rosso package right now. The only way I could afford one is if I either 1. started making a lot more money (must...blog...harder...) or 2. saved my money for a long, long time. Some 'nice' company on a 'mission' to help me 'afford' one by finding some way to stretch my current pay is NOT really doing me any favors in the long term. But hey, I could get into a Ferrari today and live the 'American dream'! We'll worry about tomorrow another day...
The same thing has happened to many with Real Estate. So many bought into homes they couldn't 'afford' in the long term, but they could afford the interest only, or neg-am payment today. And that my friends is why we have a bubble. You can't stretch the dollar forever...no matter what OwnIt or any other 'helpful' mortgage company tells you.
That brings me to my next point. See this story from the NYT. Look at this quote from a top mortgage executive at a major bank:
“We all should be proud as an industry,” Michael W. Perry, chairman and chief executive of IndyMac Bank, a lender in Pasadena, Calif., told his peers at the Mortgage Bankers Association’s annual convention in Chicago recently. “We have created an enormous amount of wealth for Americans.”
Yeah, I could've sworn the CEO of 'whatever.com' said the same thing a few years ago. These people have made sooo much money off the masses, what do you think they are going to say? Just like the stock market boom, there are a lot of people who made a killing in the RE and mortgage industries and will be set for life. BUT, there will be many more that are left clenching 'old' appraisals the same way stock-jockeys were left clenching Wall Street Journals from 1999.
I am working on a few things that I think you will find very informative. I have saved a LOT of information from when I was in the industry. I think it is time to peel back the curtain and let you see for yourselves what was REALLY going on. Look for these posts throughout the holidays.
Also...I just got my annual web hosting and URL bill in the mail. So if you need to do any Christmas shopping this season, help out the bloggers that you read by shopping through their e-tailers. I have Amazon.com on my site...so if you are buying any books, music, or electronics for anybody, going through my site is greatly appreciated. Every little bit helps!