A Major Mortgage Company Just Filed For Bankruptcy

Tell Me Best ^ | 12/1/22

[Avalon Memories]

Yay, thank you for the solid info. We have Pennymac. The mortgage was originally through the builder’s financing arm and they sold it to Pennymac after the house closed. I’m hanging on to that mortgage unless/until we sell the house, or should interest rates somehow magically collapse. (Fat chance of that, I think.)

[DownInFlames]

Home financing and real estate agents are going to be hammered.

[Don Corleone]

“Not their first rodeo?”

[Valpal1]

No, the mortgage is an asset of the entity going bankrupt and may be sold to pay creditors. But the buyer of the mortgage cannot change the terms of the original contract. Our home mortgage changed owners three times and the only thing that happened is that we had to fill out new paperwork for the auto deduct to go to the new mortgage holder.

[unclebankster]

There will most likely be a few more of these companies going belly up.

They’re a dime a dozen.

[Honest Nigerian]

So how does one file a reverse bankruptcy?
Seems like that is the thing they should have done.

[Rinnwald]

Our twelve year-old mortgage has been sold twice. The conditions remain unchanged.

[cuban leaf]

Home financing and real estate agents are going to be hammered.

---

Yep. My daughter worked for a mortgage broker during the last bubble. She made very good money while it lasted, and then she changed careers. I helped her become a business analyst in the IT department for Nordstrom. That made even better money. 😎

[Fido969]

The reverse mortgage racket is a house of cards.

[Avalon Memories]

Thank you both for the very helpful information you shared with me. :)

[higgmeister]

Reverse Mortgage Funding would have assets in homes that have lost value and cannot be sold at any price.   I always had this feeling that a reverse mortgage was a little bit fishy.   Now it turns out to be a flawed business plan.

[zeugma]

The company owns the asset, not the homeowner. So if the BK court orders the homes sold...most likely to another company, it seems to me the homeowner loses.

I wouldn't be surprised at all if this were the case. However, when you look at it from the other direction, a homeowner with a mortgage, the asset is owned by the entity holding the loan, not the 'homeowner'. So, in a reverse mortgage, wouldn't the deed be owned by the individual?

I'd be fairly surprised if it were handled like that, in truth, because the banksters always own everything.

[rrrod]

Yep. Sorry for the young people.

[MV=PY]

I think “mortgage companies” and “reverse mortgage companies” have two entirely different business models.

The headline is misleading.

[al baby]

[EEGator]

Yep.
Vanguard. BlackRock, REITs, etc.
What’s their exposure?

How’s China’s real estate bubble doing?
Oh, no GDP numbers for 3 quarters and lockdowns...sounds great.

[cuban leaf]

Not to mention all the crypto hijinx going on the last few months. This is gonna be epic. And what may be most epic is what they do to try to stop it. It may make the Russian revolution look like a block party.