Chris, smart and kind of cute in a close shaven head kind of way, what am I supposed to do with this post?

You are right it is a long list of closed mortgage companies, so what? Are you trying to depress me? Are you trying to freak out your customers that the implode-o-meter boogey man is around the corner?

Probably not.

What you probably meant to say was that all of these companies have something in common–they didn’t respect the trusted relationship a customer gave them.

The formula for an imploded mortgage company is simple and predictable:

1. Show a lack of respect for the consumer
2. Turn and burn them into whatever program makes YOU the most
3. Get them off the phone so you can do this as many times as possible
4. Throw them on a warehouse (credit) line (held for sale)
5. Mix in the studs and duds and unload them quickly to the investor
6. Wait 6 to 18 months and mix in a nice size rate increase
7. Watch borrowers and loans pop like Jiffy Pop in the investors’ portfolio
8. Institutional investors sell their MBS
9. Warehouse lenders roll up their credit lines
10. Investors (loan buyers) shove back avalanches of bad loans
11. Watch lenders and brokers go pop like Jiffy Pop

It all starts with respecting the consumer! Did you call to check on me today? Should I be nervous about that option ARM you gave me last fall?

-Silence Dogood

.