Produced by Capital Markets Today, host Louis Amaya, discusses capital markets, whole loan /MSR/ secondary trading, real estate and mortgage lending with industry experts.
Gov. Financial Intervention in Response to Covid – Vossmeyer, Claremont McKenna
As the nation struggles to get back to some type normalcy, the reality is that we will see further shutdowns as we head into the winter months. It’s impossible to forecast the full economic and financial impact of the pandemic, but we do know that many people are unlikely to return to normal work and economic consumption patterns anytime soon. It’s also anticipated that household and business defaults will likely increase and negatively affect the financial sector.
Joining the podcast to explain the federal government’s response and potential future intervention is Angela Vossmeyer, Assistant Professor of Economics at Claremont McKenna College and a Faculty Research Fellow at the National Bureau of Economic Research. Dr. Vossmeyer’s research interests include econometrics, simulation-based inference, financial economics, financial crises, and economic history.
The Normalization of Distressed Debt Part 2 - The Unemployment Rate - Mini Pod
In the past few months millions of people have lost their jobs and we have seen the most rapid spike in unemployment in history. This is not your typical unemployment event and the way the government reports the unemployment rate may not have caught up with the new economy.
Welcome to Capital Markets Today. I am producing a series of podcasts that demonstrate to investors why distressed debt, specifically, distressed real estate or (REO) and mortgage loans (NPL) may be a good investment to include in your investment portfolio. Today I will focus on the unemployment rate that is being publish compared to the amount of people who are actually not working.
Why Distressed Debt - Crisis May Be Looming Part 1 - Mini Podcast
Welcome to Capital Markets Today. I will be producing a series of podcasts that help explain to potential investors why distressed debt, specifically, distressed real estate or (REO) and mortgage loans (NPL) may be a good investment to include in your investment portfolio. There are many issues brewing that could trigger increased REO and NPL opportunities besides the obvious Covid related problems being discussed in the news daily. Today I will focus on one issue that could cause problems for decades to come.
Currently, most of us are focused on the immediate impact of the Covid crisis, the shut down, unemployment, interest rates and government stimulus. All these issues have caused the immediate scenario that we are operating in today, but what is the long-term impact? And does this long-term impact create a long-term opportunity for NPL and REO buyers?
As most of the news talks about enforcing mandatory lockdowns and handing out money to citizens, there has been a problem that has been rapidly expanding in the background. In fact, this problem might create a crisis that will not just be felt in the next week, the next month, or even the next year, but it might be felt for several decades to come.
PEMCO Capital Launching Distressed Reg D Fund
The latest long-term mortgage default projections from many analyst is now hovering around 7%. This number will be bifurcated by loan product with FHA loans seeing the bulk of the defaults. However, this number is pure projection and the long term number will depend on
Expiration of the supplemental unemployment benefits due to occur at the end of July A further increase in the unemployment rates and continuing jobless claims. And Potential decline in home values Joining the podcast today to discuss the NPL market and its outlook is myself. I was recently invited on an IMN podcast where I discuss the market and the launching of our shinning new Reg D distressed asset fund. We are putting on the final touches on the fund and it should be ready to launch within the month.
I am CEO and Founder of PEMCO Capital Management and our firm has been providing platform for institutional investor to gain exposure in niche sectors within the distressed residential mortgage and real estate markets. With our Reg D, we are now providing our institutional platform to accredited retail investors as well.
C-19, Real Estate Note Investing Post Covid-19, Cody Faller, Faller Financial
In April, the unemployment rate increased from 4.4% to 14.7%, the largest one month increase in history. It is likely that the unemployment rate hits 20% in May and some forecast a 25% unemployment matching that of the Great Depression rate.
However, the more concerning percentage is the estimate by many economists that 40% of the jobs lost will be permanent. No matter how the numbers turn out, there will be a significant impact to mortgage defaults, especially on modified and FHA mortgage loans.
Joining the podcast today to discuss the outlook for real estate note investing is Cody Faller, Founder and Chief Investment Officer of Faller Financial. Faller financial works with investors across the country from large banks and hedge funds to individual note buyers.
C-19, "Another Real Estate Crash Is Coming", Qazi, PhD Candidate Unv. of London
The COVID-19 crisis, like the subprime mortgage crisis a decade ago, has sparked major public interventions to stabilize the financial markets. But the Fed isn’t stepping in to bail out the real estate sector — and the big losers are set to be ordinary households.
This is the intro to an article title “Another Real Estate Crash Is Coming” written by Shehryar Qazi, a doctoral student and researcher in political economy at the University of London
We are fortunate to have Shehryar on the podcast today to discuss the article and obtain his thoughts on how the real estate market will play out over the next 18-24 months. Shehryar is a PhD Candidate in the department of economics at the University of London and is the coordinator for the universities “Political Economy of the COVID-19 Crisis” project.