Posted by David Butler on January 11, 2001 at 12:26:57:
Hey… your a day late! FNAC’s Brokerline program was the one real source of equivalent mortgage banking capital in the private note industry, and for the past four years, they really contributed to a booming marketplace. Unfortunately, they pulled the plug in mid-August (seems like too much BAD paper floated through the pipeline :-((( )
For what it was, and what it offered, I personally think on a competitive basis that is was as good a program as one would find… in direct comparison to traditional mortgage banking operations, particularly with regard to the LTV parameters they were willing to accept - and the relative risk factors involved.
As it turns out, they probably weren’t charging enough, in view of loss mitigation considerations.
There was some talk that they may restart the program in January, but last word I got two days ago is that probably won’t happen. They were a very successful corporate note buyer before the program, and most likely will stay that safer route.
By the way,they had contacted us last May about creating a program for “freestanding” MH notes, but they were having a difficult time accepting the risk management imperatives… based on what has gone down, it is easy to see where they were coming from.
I am keeping my fingers crossed however… they were a great outfit to work with, and they helped the private cash flow industry a great deal (including some real CREI success stories!).
Sorry I can’t give you better news at this point, but let’s hope!
David P. Butler