Vikram Pandit has started a new lending company called Orchard which looks like it can fill the void of QM loan fallout.
Today in your real estate news and mortgage news we’d like you to recall a story about a fella named Raj Date who used to work for the CFPB. While there he was instrumental in developing the new QM rules. After he left the CFPB he opened a lending company called Fenway Summer. Fenway Summer is there to handle loans that don’t quit fit QM guidelines.
Well now another player is on the scene. Vikram Pandit, ex Citi CEO, has started a company with a bunch of other super rich guys called Orchard. Orchard too it appears will be there to handle any of the QM loan fall out.
We’ve had LO’s ask us quite a bit as to what we think will happen when QM hit’s the street, and we’ve always responded the same way. It’s going to be tough, many borrowers who otherwise would have qualified won’t but something will happen. We all know this, where there’s a problem there’s an opportunity right? It’s always been that way. Too many run down foreclosures? Suddenly foreclosure clean up and maintenance companies appear out of nowhere and flourish.
It’s no different with QM. The government decides they don’t want to be involved in mortgages, so the make it really tough to get a mortgage that they have to back or insure. This results in people who are qualified to buy, just not with a QM loan, unable to get financing. The private sector isn’t going to stand by and watch billions of dollars of opportunity slip away, they’re going to step in and create financing for them.
So hello Raj and Vikram. And believe us, it’s just the beginning. There will be many many more to follow. So there’s your real estate news and mortgage news for the day.
Now, as far as the household tips goes – HERE IS THE LINK TO THE ARTICLE so you can use it for your database. Lot’s of fun stuff there.
And finally. If you feel like you want to help Mr. Sheffield, Brian’s cousin, you can do so by CLICKING HERE.
Thanks for hanging in there with us guys. We’ll get the email delivery fixed and the screen sizing and all of that other stuff soon. Anytime you do something like this you always have bugs to fix. We’re on it.
Have a great weekend.
Frank and Brian