What We're Hearing

Scratch and dent investors -- don't forget to check if your firm is actually licensed to service loans in the states where you're buying product. We're hearing anecdotal stories where vulture funds are buying problem loans only to get their hands slapped by the state when regulators do some cross checking and discover that lo-and-behold said vulture fund is not licensed to process loans there. In its recent IPO filing PennyMac notes that this can be a problem saying the solution (for vulture funds) is to contract out with a subservicing firm. In other matters, one Northern New Jersey-based loan broker tells us he's starting to hear about a lack of (home) supply in eastern Bergen County (northern New Jersey). He also noted that some of his clients are starting to look at buying homes in South Florida but obtaining financing there is a "disaster." Concerning the lack of supply it seems hard to believe but he said "as soon as something nice comes on the market it's gone"…