Since time immemorial, the Velocity of Money has been determined by the blind faith placed in it. And today, the reality is that money has nowhere to go. Take Europe, for example. Negative interest rates have come home to roost. The bank of Denmark is currently marketing -0.5 percent mortgages. That is not a typo. In fact, the overall housing sector has dramatically changed in just the past year.
A Danish bank has launched the world’s first negative interest rate mortgage – handing out loans to homeowners where the charge is minus 0.5% a year. Negative interest rates effectively mean that a bank pays a borrower to take money off their hands, so they pay back less than they have been loaned. Jyske Bank, Denmark’s third largest, has begun offering borrowers a 10-year deal at -0.5%, while another Danish bank, Nordea, says it will begin offering 20-year fixed-rate deals at 0% and a 30-year mortgage at 0.5%.
Today, Guardian Asset Management, Chronos Solutions, Ocwen, and Altisource are owned by New Residential Investment Corporation. Xome and Assurant – Field Asset Services are controlled by Nationstar, formerly owned by New Residential. Spectrum Field Services was recently sold off to a proxy firm Foreclosurepedia believes was orchestrated by Matt Martin, the former owner of Chronos Solutions. One Belt, One Road, as the Chinese would say. And there is no way that New Residential, et al., have not looked at the obscene loss of monies and the ability to bring in W2 models.
During the same period, between 2017 and 2018, “[NRIC] agreed to pay Citigroup $950 million for servicing rights on Fannie Mae and Freddie Mac backed loans with $97 billion of outstanding balances.” We also know that NRIC bought a substantial chunk of Ocwen — literally in shares and servicing — and Altisource. HousingWire had this to say in August, 2017,
Specifically, the companies said entered in an 8-year Cooperative Brokerage Agreement, which covers the $110 billion Ocwen MSR portfolio, as well as an approximately $6 billion non-agency MSR portfolio that New Residential agreed to acquire from PHH in December 2016.
NRIC, during the same period of time went on an additional buying frenzy and acquired and re-branded New Penn Financial. And in a final bite, NRIC ate up the bankrupted Ditech Financial whose second bankruptcy caused the bankruptcy of its owned firm Reverse Mortgage Solutions. It is in this deal that both NRIC and Mortgage Assets were both used as “stalking horse bidders” with respect to the handling of Reverse Mortgage Solutions, the now bankrupt provider of reverse mortgage servicing for HUD.
And for what money is out there, investors and real estate investment trusts (REIT) are demanding more bang for their buck. Take the world of rehab and restoration, for example. For years, asset managers have funneled their properties through National Association of Mortgage Field Services (NAMFS) members. And for years, NAMFS members have failed to meet deadlines, over billed, gouged, and basically treated the assets as piggy banks. With the recent collapse of NAMFS and the merger and acquisition of nearly sixty percent of all prime vendors performing upon Mortgage Field Services assets, REITs are now poised to take command over their portfolios.
In a recent poll by Foreclosurepedia, the W2 employee model is most favored. Even NAMFS members are making the move as a simple search of Indeed and other websites will show. And this is not simply because of the Dynamex – AB5 litigation and legislation. And even in light of the US Supreme Court decision in New Prime, those we spoke with cited the enormity is fraud, waste, and abuse as reasons alone to make the move.
So, how do you set yourself up to be included as the preferred vendors for New Residential and others? Well, one good way is to set your company up properly and retain a proper consultant to help you navigate the the firms whom are willing to put you to work today.
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