Comments on: Banks, Lenders and Rating Agencies Hiding Losses http://bankimplode.com/blog/2008/03/13/banks-lenders-and-rating-agencies-hiding-losses/ Tue, 06 Mar 2012 18:32:20 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Aristotle http://bankimplode.com/blog/2008/03/13/banks-lenders-and-rating-agencies-hiding-losses/comment-page-1/#comment-352 Aristotle Thu, 03 Apr 2008 21:26:05 +0000 http://bankimplode.com/blog/?p=110#comment-352 The banks and securities houses are not the only ones refusing to mark their assets, including REO, down to market. Recently, I had to do a detailed analysis of the current fair market value of REO in a particular zip code in Las Vegas. There is one lender holding a large number of "stale foreclosures", in some cases to 2 years old. They are listing houses in the MLS at the loan balances bid in at foreclosure. They are refusing to cut their listing prices to anywhere near current market prices at which REO houses are being sold. Local real estate agents say that "There's no point in making a market priced offer on their REO." Who is this lender. Greenpoint Mortgage. If I were a management level decision maker at any Federal agency with jurisdiction over Greenpoint, I would be going in to the company and taking a very careful look at the values of real estate on their books. The banks and securities houses are not the only ones refusing to mark their assets, including REO, down to market.

Recently, I had to do a detailed analysis of the current fair market value of REO in a particular zip code in Las Vegas. There is one lender holding a large number of “stale foreclosures”, in some cases to 2 years old. They are listing houses in the MLS at the loan balances bid in at foreclosure. They are refusing to cut their listing prices to anywhere near current market prices at which REO houses are being sold. Local real estate agents say that “There’s no point in making a market priced offer on their REO.”

Who is this lender. Greenpoint Mortgage. If I were a management level decision maker at any Federal agency with jurisdiction over Greenpoint, I would be going in to the company and taking a very careful look at the values of real estate on their books.

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