BloodhoundBlog

There’s always something to howl about.

Author: Brian Brady (page 9 of 27)

Commercial Real Estate Finance Expert
Structured Debt and Equity
Licensed Real Estate Broker in AL, CA, and FL

May 6, 2009

Why Don’t REALTORS Solicit Lenders For Buyers?

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Commercial Real Estate Finance Expert
Structured Debt and Equity
Licensed Real Estate Broker in AL, CA, and FL

Author website

REALTORS constantly solicit banks and mortgage lenders for REO business.  Why isn’t the producing REALTOR, as a matter of course, soliciting business from loan originators?

I posed this question at Unchained Phoenix ’09 and you would have thought I asked the REALTORs to walk on coals…at first.  A few bright agents listened to my reasoning:

  • I talk to lots of people and do a FAIR job at managing my database.
  • I subscribe to a service that notifies me when a past client’s home is listed (so I can jump on the new loan).
  • I lend nationally although that doesn’t matter.
  • I don’t charge a referral fee for relocating buyers; I just want their new loan.

Agents often consider themselves to be the center of the relationship but most don’t manage that relationship, post-closing, very well:

In finding a real estate professional, 44 percent of buyers were referred by a friend, neighbor or relative, 11 percent used an agent from a previous transaction, 7 percent found an agent on the Internet, 7 percent met at an open house and 6 percent saw contact information on a “for sale” sign. Six other categories accounted for smaller shares each.

The light bulb went off for Cindy DiCianni when I suggested that she look at last year’s business to discover the source city; she helped nine San Diegans settle in Kansas City in 2008.  She promptly added me as a “referral contact” to her database.  Alice Held did the same, promising me an invitation to her Holiday Party.

Teri Lussier asked me about this in an e-mail today:

Lenders court Realtors. Do Realtors court lenders? Often?

Of course we court REALTORs and REALTORs never court us…NEVER.  I think that’s really dumb.  Forget that I’m “just the lender”.  I’m a “person” who has influence.  I’ll most likely encounter a relocation to Dayton (or Kansas City) once every three years.  if you’re tryng to close 24 transactions a year, that means you should market to 75-100 loan originators, around the country.

What would a lender like/need/want in order for me to be their go-to Realtor of choice?

If you’re in San Diego, a monthly phone call wouldn’t hurt.  Read more

May 3, 2009

Facebook Quizzes For Real Estate Marketers

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Commercial Real Estate Finance Expert
Structured Debt and Equity
Licensed Real Estate Broker in AL, CA, and FL

Author website

Facebook quizzes might be a darned good tool for real estate agents.  You know what I’m talking about, right?  Facebook quizzes are those independent applications that ask you 5-10 questions and tell you who you were in a past life, what your inner animal is, and what sort of American accent you might have.  I take them when I’m surfing Facebook in the middle of the night.

I got hit with a black pearl when demonstrating Facebook, at BloodhoundBlog Unchained, and I saw Brad Coy’s profile.  Brad took the quiz “Which San Francisco Neighborhood Are You?” and it posted to his Facebook Wall.  His result inspired a conversation from me.

ME: “Brad, What’s up with The Mission District? ”

BRAD: “Oh, I don’t know, Brian.  I was goofing around and that’s the neighborhood the quiz results picked for me”

ME: Yeah, yeah, yeah.  I get it Brad but what’s up with The Mission District?

BRAD: I’m not following you.

ME:   I don’t know much about San Francisco and I haven’t heard a lot about The Mission District.  Is this a potential gentrification neighborhood?

It didn’t hit me until my Unchained Omega Session; Facebook quizzes, long held to be a novelty, could start the right kind of conversations for real estate agents.  I played around with one a few months ago and over 100 people took my quiz.  The lightbulb went off for RuthAnn Macklin, a Virtual Real Estate Assistant and member of CyberProfessionals.  RuthAnn figures that she can demonstrate the need for her services by pointing out how difficult it is to “go it alone” as a REALTOR, through a Facebook quiz.

“Which San Francisco Neighborhood Are You?” is a cute quiz BUT…it can start the right kind of conversations for Brad Coy.

  • Which North County Town Are You?” might be perfect for Don Reedy.
  • “Are You Really A  Moonie?” might distinguish potential Moon Valley home buyers for Center City Phoenix agent Keri Melcher.
  • “Mo or Kan?” could help Cindy DiCianni, Kansas City Agent, determine which Kansas City suburb her clients might enjoy.
  • “Are you Chill Enough For Island Life?” could help Amelia Island Real Estate Agents, the Werlings.
  • Finally, imagine what newly-discovered Read more
April 26, 2009

What Should I Wear To BloodhoundBlog Unchained?

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Commercial Real Estate Finance Expert
Structured Debt and Equity
Licensed Real Estate Broker in AL, CA, and FL

Author website

Phoenix in late April is beautiful weather…if you like the temperature approaching triple digits (and I do).  Here’s the five-day forecast for Phoenix; mid-90’s during the day and low-60’s at night.

You can bring a bathing suit because the hotel has an outdoor, heated pool and hot tub.  The hotel has on-site dining and a lounge to unwind with a margarita. Most everything you’ll need is on-site.

Phoenix business casual, in the late Spring or early Summer is typically VERY casual but neat.  Some folks will wear nice golf or walking shorts but most will be in khakis and a golf shirt.  Many will opt for jeans.  You’ll see some sneaker-clad feet, too.

Your instructors will most likely be dressed business casual.  Neckties for men and stockings for ladies might be uncomfortable;  leave ’em at home.   Dress for comfort.

Check out this video if you want to see how folks dressed last year.

April 24, 2009

Social Media Marketing Homework for BloodhoundBlog Unchained

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Commercial Real Estate Finance Expert
Structured Debt and Equity
Licensed Real Estate Broker in AL, CA, and FL

Author website

Ready for the big week ahead?

I’m Brian Brady, one of the co-founders of BloodhoundBlog Unchained.  I’m that guy with the suspenders on Facebook, LinkedIn, ActiveRain, et al.  My goal (and yours) will be to establish a ubiquitous presence on these sites so that any past or potential customer can find you.

Some homework before you come:

This is about five hours of work but I suspect many of you already have these profiles established.  If you run short on time, don’t fret.  Brad Coy and I will be on hand, Tuesday and Wednesday night, to help you get the work done for my sessions.

I’m totally stoked to meet all of you and ready to help you DOMINATE social media, locally.  You’re gonna feel a tad weird if you’re new to these sites because your teenagers know more than you do.  Ask them to help you get ready.

See you Tuesday!

April 16, 2009

FHA and VA Assumable Loans Offer an Exit Strategy For Today’s Buyers

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Commercial Real Estate Finance Expert
Structured Debt and Equity
Licensed Real Estate Broker in AL, CA, and FL

Author website

How can an FHA mortgage or VA home loan sell a home faster?   When mortgage rates are 10% and the 5% government loan is assumable.

I’ve taken a few pokes at the contributors on Active Rain; John MacArthur isn’t one of them.  John is a Branch Manager with Long and Foster, in Olney, MD.  John points out that agents and originators are failing to highlight one of the best features of government loans:

You see, no one is focusing on one of the sweetest features of an FHA loan. Oh, they talk about the modest down payment and ease of underwriting. They talk about a certain comfort level that the loan will close. We don’t hear many folks mentioning the biggest asset about FHA loans.

They are assumable!

Stop for a minute and think about 3 years or 5 years or 10 years from now. What do you think mortgage rates might be in 2012 or 2014 or 2019? Do you really believe that in the face of increased government spending, increased inflation, increased devaluation of the dollar that rates will hold around 5%?

This is really good advice.  Professional agents can distinguish themselves from the also-rans through an understanding of mortgage financing.  Nervous first-time home buyers will appreciate that an agent is thinking about an exit strategy for them.  John does it here:

Oh, and why might the lad on the left sell sooner? His 5% mortgage rate is assumable. Now, the new buyer will have to get a “wrap around” mortage for the difference between what is still owned on the FHA loan and the sales price and yes, that loan will carry the going rate at that time. The seller on the left will have to try to move his home at time when money surely will cost a bit more. It doesn’t take an MIT grad to discern that 5% on the bulk of a loan is much more attractive and affordable than the 8%, 9% or 10% or more that will be the rate in five years.

I added a scenario, with hard numbers, on Mortgage Rates Report.

Here are a few Read more

April 14, 2009

California Proposes to Regulate REALTORS Alongside Pawn Shops, and Lenders, and Banks…Oh MY!

by

Commercial Real Estate Finance Expert
Structured Debt and Equity
Licensed Real Estate Broker in AL, CA, and FL

Author website

Assemblyman Pedro Nava sponsored a bill (CA-AB33) to reorganize our state’s financial services’ regulators to be under one umbrella, the newly created Department of Financial Services.  The idea is to save a bunch of money for the State.

Of course, CAR is going nuts.  Amy Steele reports via ActiveRain.com:

AB 33 (Nava), which C.A.R. opposes, was approved yesterday in the Assembly Banking Committee. This bill would abolish the Department of Real Estate, the Department of Corporations, the Department of Financial Institutions, and the Office of Real Estate Appraisers. AB 33 proposes to transfer the powers, duties, purposes, jurisdiction and responsibilities those departments to the Department of Financial Services, which would be a newly created overarching department. C.A.R. opposes AB 33 because the function of a real estate licensee is not to provide financial services, but to list and show houses for sale, sell or manage investment properties and raw land, and manage and oversee residential rental properties. Real estate licensees, regulated by the DRE, should not be blended in with the banks, credit unions, consumer finance lenders, residential mortgage lenders and pawnbrokers because, unlike these other licensees, real estate licensees are individually licensed agents that have a fiduciary agency relationship with their clients.

Pawnshops and lenders and banks, Oh MY! Pawnshops and lenders and banks, Oh MY!  Pawnshops and lenders and banks, Oh MY!

What CAR (and Amy) conveniently left out is the subsequent bill (also sponsored by Nava); AB 34- Licensing of Individual Loan Originators:

Requires all mortgage loan originators to be individually licensed.  Also requires all loan originators to register with a national database and submit criminal history background checks.

CAR has been calling for a bill like AB34 for a number of years but only if it fell under the Department of Real Estate.  California was one of the first states to license individual originators, under the California Department of Real Estate.  Let me re-highlight a key phrase to the opposition of AB 33:

Real estate licensees, regulated by the DRE, should not be blended in with the banks, credit unions, consumer finance lenders, residential mortgage lenders and pawnbrokers because, unlike these Read more

April 12, 2009

Tony Hawk Rocks Twitter With Easter Egg Hunt

by

Commercial Real Estate Finance Expert
Structured Debt and Equity
Licensed Real Estate Broker in AL, CA, and FL

Author website

If you don’t know who Tony Hawk is,  you either:

  1. aren’t a “skater”
  2. don’t have teenage boys
  3. don’t have kids that watch Zach and Cody

I hadn’t been on Twitter in a couple of months so I checked out my Tweet stream the other day.  I don’t know how I found him but I saw @tonyhawk and decided to follow him (he’s local).   I logged into Twitter again tonight to follow back people following me.

In my Tweet Stream was a message from @tonyhawk.  As I scrolled down, I noticed that he was having an “Easter Board Deck Hunt“.  Tony autographed skateboards, hid them around the country, and was “tweeting” clues for people to hunt them down.  Tweetpics of lucky kids in NYC, LA, NorCal,  and TX were popping up.  Then, I saw this Tweet, from @tonyhawk:

  1. http://twitpic.com/38w0b – NOBODY knows where Del Mar Skate Ranch was!!?? I’m sad. Well here is another picture clue.

I started thinking that I recognized that picture; it was near Pelly’s Mini Golf. I googled “Del Mar Skate Ranch” and found out that it was less than a mile from my house.  Immediately, I clicked through to the twitpic clues, grabbed my wife and daughter, and hopped in the car to find the elusive Tony Hawk board deck.  When we arrived at the site of the old skate park, a dozen fathers and their kids were running out of their cars and hunting through the vacant lot.

I didn’t find the last Easter board deck; a cute kid around my daughter Maggie’s age did.  It was a fun and frenzied hour.

What can we learn from this? Tony Hawk has some 300,000 followers on Twitter.  Can you imagine using his celebrity in your promotional efforts?  How about someone else?  I once suggested that Shawna Ebersole recruit Peyton Manning to promote her new site.  What if he “tweeted” links to it, once a month? (he’d have to sign up first)

Shaq tweets.  Perhaps Greg Swann could have  arrange for Shaq to sit an open house with him to sign autographs.  If Shaq tweeted the address to his 600,000 followers, the place would be swamped.  Okay… Read more

April 11, 2009

Wanna Piss Off The RE.net? Succeed with Online Sales Letters

by

Commercial Real Estate Finance Expert
Structured Debt and Equity
Licensed Real Estate Broker in AL, CA, and FL

Author website

I forgot how much I love Copyblogger.  Greg Swann is echoing its posts on a scene in the sidebar.  I just clicked over to the one which explains that the death of ugly long-copy is overexaggerated.  That article links to an article that asks “Is Your Tribe Holding You Down?”  When you read about “the Cool Kids”, does it remind you of the RE.net?  A few wealthy tech guys and a whole lotta bloggers with a real estate license, pontificating about how consumers “might” behave.

Then there’s the “IM crowd” who remind me a whole bunch of the BHBU grads.  Speaking of which, where are all the BHBU graduates lately? I think I know the answer to that because I’ve talked to a lot of them on the phone.  The BHBU grads are JUST like the “IM” crowd Copyblogger talks about; they’re hella busy.

If  you’re all worked up, you can skip the rest of this rant and yell at me.  Otherwise, keep reading

THIS burns my ass- agents and originators marketing the way the “cool kids” tell them to rather than doing what they KNOW works.

Take a look at this.

“EEEEWWWWWWWW” says the RE.net (usually over on ActiveRain).

Okay…but what about this?  This agent is using long copy techniques in a her video.   Is what she is doing much different than this?

Check this! This Unchained graduate is  inviting people to register for free homebuyer education courses (and building a HUGE opt-in database).  If you think he’s a genius, he’s not.  He ripped a page from the Dan Kennedy playbook.  (Scott will admit that, too- ask him in a few weeks at Unchained)

Here’s another example of ugly marketing.  I don’t know how many agents have told me that they have inventory problems.  Could you turn to CraigsList to find properties, that aren’t listed,  for your buyers?  Before you criticize the messenger, consider the message.  Few agents reverse prospect for home buyers.  While we talk about single property websites, nobody is discussing single-buyer websites.   Think old-school cover letters, accompanied with offers, to tug at the heartstrings of hard-hearted sellers…on the internet.

Which is more important to Read more

April 9, 2009

Battle Back With Your Posse

by

Commercial Real Estate Finance Expert
Structured Debt and Equity
Licensed Real Estate Broker in AL, CA, and FL

Author website

Seth Godin calls it a “tribe”, I call it a “posse” but they are both slang words for network.  If you’ve heard me speak at any of the Unchained events, you learned about my “deliberate posse creation” using social networks.

Seth describes that we belong to many sub-groups within our network:

If you think about the tribes you belong to, most of them are side effects of experiences you had doing something slightly unrelated. We have friends from that summer we worked together on the fishing boat, or a network of people from college or sunday school. There’s also that circle of people we connected with on a killer project at work a few years ago.

Hold that thought if you’re coming to Unchained.

Look at the Government’s response to the housing mess.  Rather than accept the fact the we can’t trust everyone with a house (we tried and it failed), we’re trying to fix an amputation with a bandage. TARP and HARP are bandages, soon to be blood-soaked and soggy.  We need to cauterize the wound.

Our industries are still TARP-ing and HARP-ing about who’s to blame for the financial crisis.  What a colossal waste of time.   I can’t find one  REALTOR nor one originator who can reverse the losses the banks, investors, and homeowners suffered…BUT…if we all start doing our jobs,  we can turn this thing around.  Call it a grassroots effort to “battle back” from this mess.

Direct counseling with no bullshit.  Keepin’ it real.  Advising folks who will never be able to afford the property to rethink their priorities and filling those houses with willing and able homeowners…THAT’S how we’re gonna “battle back”.

Okay, if you’re coming to Unchained, keep that message in mind and go back to the Seth quote.  You have a network and we want to get the message out.  You’re not going to be alone in this endeavor.  Read what else Seth said today:

What would happen if trade shows devoted half a day to ‘projects’? Put multi-disciplinary teams of ten people together and give them three hours to create something of value. The esprit de corps created by a bunch Read more

March 31, 2009

Don’t Discount Points As A Strategy To Lower Mortgage Costs

by

Commercial Real Estate Finance Expert
Structured Debt and Equity
Licensed Real Estate Broker in AL, CA, and FL

Author website

Discount fees (sometimes called “points”) are considered pre-paid interest.  Points are generally tax-deductible and are used to lower a buyer’s mortgage rate.  Most real estate agents have been taught that “points” are “padded profit” to a lender or loan originator and should be avoided at all costs.  Jeff Belonger debunked that myth yesterday; I was surprised to see the misinformed opinions being offered by the real estate agents and mortgage originators.

Today’s low interest rate environment combined with low expectation of immediate home price appreciation offers a perfect opportunity for buyers to secure a low mortgage rate by employing a strategy of “buying the rate down” through a discount fee.

Let’s look at an example, from today’s rate sheet-$400,000 purchase price, $100,000 downpayment, for a 720 credit score borrower with adequate income documentation:

RATE               DISCOUNT FEE     NET BORROWER COST

5.00%                            0                          $0

4.75%                            1%                     $3000

4.5%                              1.5%                  $4,500

The proper way to perform this analysis is to determine the expected minimum hold time for the mortgage.  Most real estate agents will agree that in this environment, transaction costs combined with low expected appreciation rates suggest that five years is the absolute minimum to hold the property.  Buyers may elect to move (and rent) the property but few agents would be so bold as to suggest that the buyer could make a profit in less than the five year time frame.

It is my opinion that refinancing the mortgage loan will be difficult and unprofitable, during those same five years because:

  • low price appreciation will limit buyers ability to “harvest home equity“
  • interest rates are at a 35-year low.
  • rapid inflation seems likely due to massive government borrowing and the Federal Reserve’s “printing money” policy of the past 8-12 months.  Inflation leads to higher mortgage rates.

Five years will be our minimum hold time for the mortgage loan then. This amortization schedule helps us determines what the lowest total costs are over five years.  Simply add the cumulative interest (at month 60) plus the discount fee to determine the total costs:

RATE      CUM. INT.   Read more

March 11, 2009

BloodhoundBlog Radio: VA Home Loan Tutorial For California REALTORS

by

Commercial Real Estate Finance Expert
Structured Debt and Equity
Licensed Real Estate Broker in AL, CA, and FL

Author website

I recorded this webinar on March 11, 2009. The AUDIO IS HERE and will open in a new window.  Listen along and click through the links as I discuss them:

March 10, 2009

Kicking the CAMELS Habit: Is Your Bank “Safe and Sound”?

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Commercial Real Estate Finance Expert
Structured Debt and Equity
Licensed Real Estate Broker in AL, CA, and FL

Author website

The FDIC developed an acroynm for the composite ratios it runs to “rate” the financial health of its member banking concerns.   An index, ranging from one to five is calculated and the FDIC premium charged to the institution is commensurate with its CAMELS rating.  “CAMELS” stands for:

  • Capital Adequacy
  • Asset Quality
  • Management
  • Earnings
  • Liquidity
  • Sensitivity

The Federal Reserve Bank of San Francisco explains the CAMELS ratings and the highly-sensitive nature of the findings:

All exam materials are highly confidential, including the CAMELS. A bank’s CAMELS rating is directly known only by the bank’s senior management and the appropriate supervisory staff. CAMELS ratings are never released by supervisory agencies, even on a lagged basis. While exam results are confidential, the public may infer such supervisory information on bank conditions based on subsequent bank actions or specific disclosures. Overall, the private supervisory information gathered during a bank exam is not disclosed to the public by supervisors, although studies show that it does filter into the financial markets.

The average depositor might freak out if he discovered her bank had a 4 or 5 CAMELS rating and withdraw her deposits. How can a depositor do her homework if  the  bank can’t tell you its CAMELS rating ?   The good folks at BankRate.com have developed a similar system, loosely based on the CAMELS litmus test.  Here is how they describe their “Safe and Sound” ratings system:

Bankrate’s Safe & Sound ratings are comparisons to both industry peer norms and standards. In a very small number of instances, operating strategies that differ from industry norms lead to ratings that are not truly reflective of an institution’s financial condition. A Safe & Sound rating of one or two stars does not suggest that Read more

March 9, 2009

I want my…I want my…I want my TA-R-P

by

Commercial Real Estate Finance Expert
Structured Debt and Equity
Licensed Real Estate Broker in AL, CA, and FL

Author website

This is getting too easy.  Financial Times interviewed Bank of America CEO Ken Lewis. His answers reveal why the quasi-government agency that BAC has become is destined to fail.  Read the whole article.  You’ll swear your reading Orwell’s Animal Farm.

FT: Do you regret your acquisition of Merrill Lynch?

Lewis:  I’d be less than honest to say that I haven’t had my moments, but I always try to step back and say don’t judge it by this time and look forward. I still think it’s a compelling, strategic acquisition and we’re going to be awfully happy to have done it over time.

BRADY (commentary):  Ken Lewis gleefully overpaid for the world’s largest securities’ firm out of  pride and ego.  The prospect of commanding the largest mortgage originator and securities firm appealed to Mr. Lewis’ ego.  His feckless behavior showed contempt for his shareholders and will be an expense to the people of the United States but why should he care?

FT: Was there a moment when you would have preferred to pull out of the deal?

Lewis:  We did in fact think about doing that . . . and consulted with the government about filling the hole [in Merrill’s balance sheet] if we didn’t get out. We were strongly advised that the best thing to do was to go forward with the deal on time. While we made the final decision, we relied heavily on that advice because we respected the opinions of the various agencies.

BRADY:  Ken ain’t calling the shots at BofA; he’s an overpaid government employee now.  Wanna know how I know?  Read the next question.

FT: Have you been surprised by the strings attached to the Tarp money?

Lewis: I’ve been surprised at the reaction of the public for those that have taken the Tarp money when we were doing what we thought was in the best interest of the country.

BRADY:  Read the last five words.  Ken Lewis’ responsibility is to do what is in the best interest of the BAC shareholders not the country.

The answer is, of course, to break up the banks and stop the government from competing with the healthy banking institutions. Read more

March 8, 2009

No, Mr. President. I Won’t Stand Down.

by

Commercial Real Estate Finance Expert
Structured Debt and Equity
Licensed Real Estate Broker in AL, CA, and FL

Author website

I tried so hard to keep an open mind about this Obama guy.  The optimism of our people on Inauguration Day was infectious.  The snappy patter of the “three words” video had my toes tapping and heart filled with optimism.  Alas, the honeymoon is over.  I now stand firm in my belief that President Obama has “The American Experiment”  in his cross hairs with a bunker-busting Marxist bomb as the payload.

Obama’s defeatist attitude as President, which is markedly different than his optimistic attitude as a candidate, is permeating society as we know it.  Witness Tom Vanderwell’s observation:

…we are now in a situation where the government does own some of the banking industry and the debate should now be about the how and not the whether or not.

In fairness to Tom, he’s the messenger and not the message but I, for one, am not willing to model the American banking system after the 1982 Mexican coup.  I’m getting out my tin-foil hat and screaming from the street corners that nationalising (sic) the banks is unacceptable.  My comment to Tom:

Actually, it should be about the how not. How quickly can we break up these outdated institutions and get them in the hands of local, productive entrepreneurs?

As you might have guessed, Tom’s in complete agreement with me:

Absolutely. My point was that essentially we’re already nationalizing them, let’s focus on what we have to do to get them reshaped into the type of institutions that will actually work….

It’s not just the banks.  Wall Street had a small rally this past Friday morning.  The unemployment report came out and while the figures were gruesome, the Street expected this mess and shrugged it off until…

The leader of the (still) Free (but holding) World said that this is the worst news since the Great Depression.  His comment struck fear in the hearts of every trader at a post and prompted a 200 point reversal in DJIA fortune.  By the way, with the Dow under 7000, 200 points matters;  it’s a 3% swing.  Fortunately, those same scared traders ignored our Boy-Leader and focused on the fundamentals of the market; Read more

March 6, 2009

The Subprime Bank of America

by

Commercial Real Estate Finance Expert
Structured Debt and Equity
Licensed Real Estate Broker in AL, CA, and FL

Author website

Remember those impetuous, ne’er do well subprime borrowers and those greedy subprime lenders?  Writing about them is sooo… 2007 but I’m happy to report that both greed and reckless abandon are alive and well today….

…at Bank of America.

Remember Ken Lewis?  He’s that sober-faced, bespectacled CEO of the Charlotte-based behemoth that started out as North Carolina National Bank and the Bank of Italy in San Francisco.  Ken has presided over Bank of America since 2001.  Since then, he’s been binging on banks like a subprime borrower stripped equity out of the old ranch:  He bought Fleet Bank in 2004, MBNA in 2005, and ABN-AMRO, LaSalle Bank, and US Trust Company in 2007.

That wasn’t enough.  Like a subprime borrower addicted to Vegas, strippers, and shiny new Hummers,  he was having too much fun to see the market turn.  What did Ken do while the house of cards was a-tumblin’?

He bought Countrywide Financial, America’s largest mortgage originator.

Still, that wasn’t enough.  Like a crack-addict jonesin’ for a last hit on the pipe, Ken absorbed America’s largest securities brokerage, Merrill Lynch.  Just like the crack addict who spent his welfare check on that last hit, Ken took money from the government to cure his fix for power.

Wall Street doesn’t like what Ken’s done.  Since the bailout binge, BAC has dropped from $37 to about three bucks as it became America’s largest subprime lender/servicer (Countrywide originated a boatload of subprime, option ARMs, and Alt-A paper while Merrill’s First Franklin was in the top three of subprime lenders).  A guy that eschewed the whole “subprime” lending market jumped into the deep end, drunk with power.

Now, it’s not just Wall Street that’s calling for Ken’s head.  It seems that the unions’ pension fund managers are pissed off, too:

CtW Investment Group, which said its affiliated funds own 116 million Bank of America shares, faulted Lewis for not backing out of the merger or revealing Merrill’s losses in a timely manner, and letting Merrill pay $3.6 billion in executive bonuses just before the merger closed.

It said Lewis’ actions have contributed to a 90 percent drop in Bank of America’s share price Read more

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Inventing Real Estate 2.0

Welcome to BloodhoundBlog, the national real estate industry marketing and technology weblog written by, for and about real estate professionals. Better yet, welcome to the wired world of real estate. We are busily inventing Real Estate 2.0 – technology, marketing, service and salesmanship. Like all Bloodhounds, we are smart, frisky and fiercely independent. We've built a spot on the earth – beloved over all – where each one of us can be who we are, no matter who that might be. We are committed to an idea of excellence that will flush the bums, the con-men and the crybabies out of the real estate industry. If you yearn to have your failures excused, your moral lapses absolved or your boo-boos kissed, seek elsewhere. But if you are sick to death of mediocrity – welcome home. Read all about us, subscribe to our feed and steel yourself for the hunt. We work hard, we play hard, we learn everything we can – and we bow to no one.

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