Author Topic: Entertaining listings  (Read 13726 times)

cfb

  • Full Member
  • ***
  • Posts: 132
    • View Profile
Re: Entertaining listings
« Reply #30 on: September 03, 2014, 03:58:03 PM »
I didn't look at the fine data detail, but I'm not surprised about the 11 mortgages.  However you slice it though, he's into 324k of debt.  I thought HELOC's weren't included in the revolving debt part?  Could have sworn I asked that of LC and was told that HELOC's didn't appear in the standard screen info.

And it does make the DTI weird, but I know HELOC's aren't included in the DTI, I asked that question as well.

He didn't fly through my filters, because I have a max revolving credit of 50k.  Something I read in a 1000 year old guide on village lending that the lenders wouldn't loan money to someone already too deeply in debt.  If you help someone else make their bad problems worse, eventually they become your problems.  However, there are a lot of loans with 50-200k in revolving debt but would pass most of the common standard 'simple' or 'high income' filters.

Here's the real problem with the guy.  He's a landlord with 11 properties in or near Norco California, and as a service manager for a car dealer with a low six figure income, he's pretty dependent on that property income being persistent.  Norco is subject to wildfires and is in a significant earthquake zone.  Its also literally a horse town...there are few roads and most people get around by horse.  So in the event of a prison break, fire or earthquake, emergency services would be hard pressed to get into the area let alone do anything about it.

The primary employers are the nearby prison, a naval base and the local schools.  So the tenants are school teachers, sailors and prison guards.  In an area of 400k-600k average homes.  Ridiculous foreclosure rates.  I'm guessing he's been buying the foreclosures and fixing them up.

Huge accident waiting to happen...especially in this time of super dry drought conditions.

cfb

  • Full Member
  • ***
  • Posts: 132
    • View Profile
Re: Entertaining listings
« Reply #31 on: September 03, 2014, 04:08:53 PM »
Out of a possible 999 in my scoring system this one scored a record low -158 (minus 158) and it looks even worse when I check the detail. How its nearly fully funded in 10 minutes is beyond me. I don't get it!

Everything sells, at least almost everything.  And LC's loan quality seems to be declining.  But I was thinking about this and looked at it from their perspective.  If they list a loan and it doesn't sell, doesn't hurt them a bit.  If it sells they get their percentages whether the loan defaults or not, and a larger fee these days for collections.  Only real problem is if their default rate flies through the roof, it may put off investors.  In the meanwhile, higher and higher loan, borrower and lender volumes look pretty good for an IPO and those pesky defaults will happen later.

hoggy1

  • Sr. Member
  • ****
  • Posts: 401
    • View Profile
    • Email
Re: Entertaining listings
« Reply #32 on: September 03, 2014, 04:27:18 PM »
I thought HELOC's weren't included in the revolving debt part?  Could have sworn I asked that of LC and was told that HELOC's didn't appear in the standard screen info.

And it does make the DTI weird, but I know HELOC's aren't included in the DTI, I asked that question as well.

My HELOC appears on my credit reports included with revolving credit (because it is revolving credit). LC would have to take special action based on evidence tendered by the borrower to break out HELOCs. I don't see where LC takes special care doing anything.

It doesn't affect DTI (much) for the tens year draw period (varies with state law) because no payments need to be made (some places interest only) until the second ten years when it becomes a regular amortized mortgage. I think my HELOC is a flat 3% so nearly nothing.
Steve

cfb

  • Full Member
  • ***
  • Posts: 132
    • View Profile
Re: Entertaining listings
« Reply #33 on: September 03, 2014, 04:58:54 PM »
Here's what the LC rep told me when I pointed out that a particular borrower had a low revolving # but the fine data showed a six figure debt ex mortgage.

"Some points I have had clarified:

1) total_bal_ex_mort can include a home equity line
2) mort_acc includes all mortgage accounts in the credit file history (including those that have been fully repaid)

That might help to put more perspective on it.  The four columns to the right of the table are the best indicators of current exposure the borrower has."

So in that instance the revolving credit # doesn't include helocs (drawn or not) and one has to go to the download data and look at the total_bal_ex_mort column, or whatever its called these days.  That exchange was about a year ago and I know the data columns change.

I had found quite a few people that looked like dandy borrowers if you didn't look at the download data, at which point many borrowers looked horrible.  The one I inquired about was an A5 borrower with almost no revolving debt, a low DTI, and plenty of income.  But he owed 200+k on his heloc and had a big mortgage and neither was on the basic front page, included with the revolving debt, or included in the dti figure.

Rob L

  • Hero Member
  • *****
  • Posts: 2137
    • View Profile
Re: Entertaining listings
« Reply #34 on: September 03, 2014, 06:43:27 PM »
So, this loan is actually a real estate investment in Norco CA.
Wonder if the 9 "smart money" folks figured that one out before funding it?

Fred

  • Hero Member
  • *****
  • Posts: 1421
    • View Profile
Re: Entertaining listings
« Reply #35 on: September 04, 2014, 12:18:26 AM »
Looks like our Sacristan has just moved 350 miles to Salinas, CA.


Rob L

  • Hero Member
  • *****
  • Posts: 2137
    • View Profile
Re: Entertaining listings
« Reply #36 on: September 04, 2014, 10:29:42 AM »
Not a local move; 350 miles north from the LA area to east of Monterey.