Another one bites the dust - OwnIt Mortgage
I was out of town on the east coast for a little while catching up with friends, and going to the Army/Navy game in Philadelphia. Navy made it a 4 year sweep of both Army and Air Force...too bad they didn't play that well when I was there. Anyway, I have quite a bit on my plate right now, but lets look at a few things.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:
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From: OwnIt Mortgage Solutions [mailto:info@ownitmortgage.com]
Sent: Tuesday, December 05, 2006 4:26 PM
To:
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
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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!
Stay tuned...
SoCalMtgGuy
posted by SoCalMtgGuy at 12:17 AM
11 Comments:
The entire industry will be disintermediated and join the likes of travel agents.
Good to see new posts.
Me too, glad to see you back again. I am looking forward to your new stuff on what was REALLY going on. I am glad you are still out here. Alot of bloggers are disappearing or not posting alot because the psychological tide is turning or in some places has turned. I want to see this stuff chronicled so there is something for economists and historians to reference when the sh!te hits the fan for the FBs.
metroplexual,
That is what I hope will happen.
The problem the 'bloggers' are having, is that now that the media is saying everything they have been saying the past year or so...they don't feel the need to say it.
I sort of/almost fell into that trap.
I wish I had the readership of say a major nationwide newspaper. I wish I could reach more people and let them know what is going on...but that would mean swimming against the stream and not following the sheep.
Thanks for the comments...
SoCalMtgGuy
Thanks for the reply, I think that the media are still not doing enough analysis. It is almost like they treat politicians with the he said-she said approach so as not to be taking sides. Even though the one side is clearly lying they are given credence (See the NAR with Lareah or Bob Toll).
Analysis is allowed in news reporting, just be honest and say it is analysis. I think that is why blogs make the difference and will be looked at as a source of info in the history books. It is only here that honest thought and analysis can be voiced anymore. Anyone wonder why newspapers and evening news are losing their subscriber/viewership numbers.
What happens to the people who have mortgages with this company?
Good question. My guess is the are probably already converted into some kind of MBS (mortgage backed security).
The loans are split-up between the security piece and the servicing piece. Even if the loan is sold, somebody has to service that loan.
Ever wonder why you get a letter in the mail telling you to send your mortgage payment to some 'new' place.
There will be some issues when the company goes under, but believe me, somebody owns that mortgage, and they will want their monthly paycheck. They will make some that someobody is 'servicing' that loan.
I hope this helps some...
SoCalMtgGuy
As a now former employee of Ownit, I can personally assure you that we were a company who really were trying to change things.
We created more loan programs that encouraged the use of Full Doc, NOT stated income. We NEVER had a No Doc loan, we never went over 90% LTV on non-owners. We didn't do many of the things that other wholesalers did and continue to do, yet here you are, lumping us with the rest without really knowing who you're talking about.
We were one of the good guys, and you should be much more afraid that someone like us is gone, and fear what is left of your choices.
Thanks for your concern about the employees. Nice of you, seeing as it's the holidays and all.
Ownit always sold all its loans, so borrowers should not have any change to where they send their payments.
Sure, they sold all their loans, and when the majority of them went bad, they had to buy them back because that was their policy. When they ran out of funds to buy them back, they had no choice but to close their doors.
I don't have to know too much about the company. They were subprime lenders, obviously writing very risky loans. It is always the ones that write the most risky loans that go under first since lack of down payment doesn't leave much of an incentive to keep paying when things get tight.
This is not the end, but rather the beginning...more will soon follow in their footsteps!
Here it is 2009 & I'm just finding out my lender went bankrupt almost 3 years ago? Who is my lender now then? I became disabled this past year & experienced a severe decrease in my income. I've been working on a modification plan for months at the suggestion of the loan servicing company. The loan servicing company, Litton Loan Servicing, said I was the perfect candidate & they'd work with me. I lost absolutely everything while working to put this together. I've also ended up with huge debt & a very poor credit score by banking on this. Now I'm being told my lender won't do modifications or work with the stimulus plan. They aren't only stealing my house now, they've stolen my future. Why did they lie to me for all these months & let me put everything else in my life in jeopardy? I looked online to see where my lender was based out of, Ownit Mortgage Solutions, to further inquire. That's when I found out they went bankrupt almost 3 years ago. I don't even know who my current lender is. Why are they hiding? How can I pursue anything when I don't even know who my current lender is? Maybe that's the idea behind their low blow tactics. I think I should have at least had the right to know who I'm dealing with before they were allowed to completely ruin my life. Maybe they'll never step up & take credit for destroying my life & my future. I guess this is why I can't even get as much as a response from the loan servicing company, despite all my attempts to contact them.
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