EppsNet Archive: Mortgage Industry

Get Rich Making Dumb Decisions

The people on the short side of the subprime mortgage market had gambled with the odds in their favor. The people on the other side — the entire financial system, essentially — had gambled with the odds against them. Up to this point, the story of the big short could not be simpler. What’s strange and complicated about it, however,… Read more →

EppsNet Book Reviews: The Big Short by Michael Lewis

I worked in the information technology department of a mortgage bank in the run-up to the 2007 implosion of the subprime mortgage market . . . Given that it was fairly evident at the time that complicated financial instruments were being dreamed up for the sole purpose of lending money to people who could never repay it, it’s remarkable that very… Read more →

No One Listened

Today, I will introduce the Free Housing Market Enhancement Act, which removes government subsidies from the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac), and the National Home Loan Bank Board. . . . Congress should act to remove taxpayer support from the housing GSEs before the bubble bursts and taxpayers are once again… Read more →

Chuck Schumer Can Blow Me

Disclaimer: I used to work at IndyMac. It was poorly run and deserved to fail. They got way too much credit for their success when times were good. Look — in a housing bubble, a monkey with a sign can sell mortgages. Then when things started to turn ugly, they took the approach of trying to manage the stock price… Read more →

Horses, Barn Doors, Etc.

Fed to crack down on shady lending practices — msnbc.com Quant le cheval est emblé dounke ferme fols l’estable. — Les Proverbes del Vilain Read more →

This Doesn’t Look Good, Indy

IndyMac, my former employer, laid off another 3,800 people this week, more than half the remaining work force. I got the axe myself almost exactly a year ago. Prediction — at job interviews, these people will hear something I heard a lot during my own interviews: “We’re seeing a lot of applicants from the mortgage industry.” Yeah . . .… Read more →

Got a Job

After three months on the dole, I got a job offer from the IT director of a local non-profit healthcare association here in Orange County. I start next week. As Gerald Ford used to say, “Our long national nightmare is over.” It’s a small IT group — 8 people, including the director. I’ve got to admit I’m a little burned… Read more →

Advertisement for Myself

I was laid off recently by a mortgage bank here in Southern California. Times are tough in the mortgage business, as you may have heard. First, some tips on how not to do a layoff: Call the layoff a “rightsizing,” which suggests that there was something “wrong” with the people who were let go. (Actually, the company I worked for… Read more →

Hat Trick

My son’s hockey team didn’t do so well at NARCh this time around. They got knocked out in the round-robin portion of the tournament. That left us with some extra time on our hands, some of which we used to drive up to Tampa to watch the Angels get worked by the ordinarily hapless Devil Rays, 7-2. We got good… Read more →