OK, it's time for a little self-deprecating humor for those of you that don't know my witty side ... here goes ... guess what a genius I am!
In this article immediately above, I talked a little about a new business paradigm and subprime wholesalers a bit, and in several previous pieces here in my personal Blog, I refered to them, have said they're here now, BUT you just don't know what they are! Well guess what?
Want a NAME? Now comes the "Genius" part, I actually READ THE WORDS regularly in several industry publications (you've only heard me tell you to do that - what - about 10 dozen times or so?) AND because I've
'been there and done that,' I often can recognize stuff others might miss.
So ... today I'm reading my dead-tree (paper) version of the National Mortgage News
(my favorite industry publication for nearly 30 years, comes out every Monday) --- and low and behold --- on the front page is an article about WL Ross & Co. LLC (a name you'll all hear a lot about soon); who last year purchased the servicing platform of bankrupt American Home Mortgage, Melville, NY and last week they closed on it's $1.3 Billion purchase of Option One Mortgage Corp, Irvine, CA (a $55 Billion servicer of non-conforming paper).
TRANSLATION: Many of you have heard me say for several years, that the serious money in this industry is NOT as a Mortgage Broker, but as a Mortgage Banker Seller/Servicer. Over time, the stable servicing income out paces origination income many times over; this I know from several decades of personal experience from my own company.
CONCLUSION?: WL Ross & Co. LLC is clearly gonna be one of the next generation subprime wholesalers,
on that you can bet your future career (says me, that 4 decade subprimer dude you know).