Dead Men Can't Sell Loans: A CEO Has it Out with the Head of Capital Markets

Dead Men Can't Sell Loans: A CEO Has it Out with the Head of Capital Markets

by Jess Lederman
"It’s been noted that any financial professional can prove what physics is still wrestling with —
namely, that time travel is impossible. You see, if it were possible to goback in time, then you
could set the dial back some five or six hundred years, use the spare change found in your couch and under your car seat to make a modest deposit at the Medici Bank (if you want to visualize the Casa de Medici, just imagine if Goldman Sachs merged with Bank of America, Wells Fargo, the Federal Reserve, and, well, everybody), and by the magic of compound interest it will have multiplied into a mighty fortune by the present time..."

Whole Loan Execution: Pricing of Non-Agency Loans

Whole Loan Execution: Pricing of Non-Agency Loans

A loan’s value is a sum of all parts:  LTV, Doc type, FICO, and so on.  Any one factor can be a compensating factor, and any one can be a deal-killer. In the portfolio space, there is typically the ability to have flexibility in accepting one impairment, assuming the other two are strong enough to compensate.  This is the underlying theme of portfolio lending: the ability to use compensating factors in underwriting a mortgage...