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Updated about 6 years ago on . Most recent reply

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Chris Seveney
  • Investor
  • Virginia
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What changes do you see happening in the note industry in 2019v

Chris Seveney
  • Investor
  • Virginia
ModeratorPosted
I am curious what changes if any do you see in the coming year in the note industry ? I feel 2019 prices will still be high even as the real estate markets begin to soften as I would think notes / delinquencies would have a lag from traditional real estate. With a split Congress I do not see additional regulation being imposed in the industry. What are your thoughts on pricing, regulations, where the market is headed etc.?
  • Chris Seveney
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Jay Hinrichs
#1 All Forums Contributor
  • Lender
  • Lake Oswego OR Summerlin, NV
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Jay Hinrichs
#1 All Forums Contributor
  • Lender
  • Lake Oswego OR Summerlin, NV
Replied
Originally posted by @Chad U.:

Defaults will likely continue to decline or flatline, thereby diminishing distressed inventory. With the wave of wannabe note investors, demand will increase while inventory continues to decrease hence driving prices even higher. I believe 2019 will be a defining year and separate the wheat from the chaff for those who "dabble" in NPN investing from those who have years of experience and are well capitalized.

As for regulation, I don't see Dodd-Frank disappearing any time soon given the split congress.  So this might pave the way for more Seller-Finance opportunities as it remains tough for those to qualify for QM loans.  However, this will likely bring out many more lenders offering non-QM loans thereby increasing the pool of riskier loans, hence creating additional  inventory in the ensuing years. 

 I would definitely get chummy with the non QM lenders that portfolio their paper..  back in the day when a lot of this was done by Thrifts 

like household finance and others.. I had a pipeline at one time in Oregon were i got a swing at all of their NOD's with the model for me to buy the note 30 days from the sale.. just do a substitution of trustee and normal assignment.. I would either end up with the asset or someone would buy it at the court house steps.. Now i never tried to get them performing like you guys do it was simply a strategy to buy deeply discounted real estate and not have to wait forever for the foreclosure time lines.. Sadly Mrs. Pickle ( her real name) was transferred and the new state manager would not play ball. but it was great while it lasted.

on Dodd Frank side I keep my NMLS license current although i am not active mortgage lender right now.. but i do the CE every year and read the periodicals.. don't see much of anything changing there.   So many of the distressed notes were the  2nds that were given for no money down deals.. those have at some point have to finally flush through the system.   

But this being merica there will ALWAYS be defaults.. its not Canada thats for sure.

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JLH Capital Partners

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