Hi all,
Just talked with an old friend out of Atlanta Ga. in the mortgage lending buisness, he says his company deals with CTYS and they are major, he says the problem with CTYS is the servicing of the loans, he says he will sell Cityscape a portfolio of loans, usually about 1.5 million worth in 1 wack, then Cityscape will take over 90 days to contact the customer with the payment information, he says the customer has no idea who owns ultimately owns their loan when it is orginated, so the customer has no idea who to pay the payments too, he says Cityscape is a very major company, the best in their field, he says Cityscape has been buying 570 beacon scores in the past, with 125% equity ratio, and they do not require MI.
He says they eliminated the 125 program for the 570 beacon score and the new requirement for beacon scores is 620 for the 125% equity ratio loans, he says they raised the limit from 60k maximum loan amount on the 570 beacon loans (that was the program that was cancelled) to 100k maximum for the 620 beacon loans.
He says they have a new program implemented where they are very agressively trying to attract A tear credit, and he believes they will be successful.
He says he wants to buy the stock, although he believes short term losses are on the horizon, because of the combination of these problems, to what extent he does not know.
he says they screen their loans closely for fraud before they purchase the loan from the mortgage companys, he says that is one of their strong suits, they do not put up with laxed guidelines.
My opinion: Looks like another overdone wall street sell off... |
