Mortgage Originator Magazine

When Totalscum replaced Wantmore

Last week at a public meeting Charlie Munger - Warren Buffett's long-term partner (and possessor of at least the equivalent insight) - presented a compelling fable about the credit crunch. Here I have shrunk his account by about 90 per cent. I do hope it will encourage you to read the original, which you can do at http://bit.ly/it7ZlP.

"In the country of Boneheadia there was a man, Wantmore, who earned his income as a home mortgage loan originator. He operated conservatively, demanding large downpayments, documented proof of adequate income and an immaculate credit history. He sold the loans to life insurers who checked them carefully before paying and held them until maturity. As Wantmore prospered he attracted the attention of Tweakmore, a very bold and ingenious investment banker.

"Tweakmore had become the richest person in Boneheadia, driven by an insight that had come to him when he visited a collection of gambling casinos in a desert. Tweakmore saw that if he added to investment banking a lot of activities that were the functional equivalent of casino gambling - masked by respectable-sounding labels such as "derivatives" - these could grow to dwarf all the action in ordinary casinos. Within twelve years, Tweakmore was the most important investment banker in Boneheadia, rising rapidly because he was very successful in convincing regulators and legislators to enlarge what was possible including the use of Mark to Model accounting that enabled banks to report whatever profits they desired.

"In his first proposal to Wantmore, Tweakmore held his ingenuity in reserve. He simply wanted to buy Wantmore's loans for more than the life companies paid. Then he would divide them into four big tranches called CDOs, sold by a highly-paid sales force to whomever would buy them in all parts of the world. There was a tiny fifth tranche, which was less valuable.

"To Wantmore, Tweakmore's idea seemed unfeasible, resembling the operation of a meat vendor who bought 1,000 lbs of braising steak and sold it as 950lbs of filet mignon and the balance as dog food.

"But Wantmore's doubts melted when Tweakmore came up with the money and everything worked out exactly as Tweakmore had planned. Tweakmore now displayed his full range of ingenuity. He proposed that Tweakmore start selling a new "sub-prime" mortgage. There would be no down payment and no credit checks. Also, each loan would be very user-friendly in its first three years during which the borrower could make only tiny payments. After three years, very onerous payments were required.

Mortgage Originators are Gravitating Towards MortgageDirectMail ...

Mortgage Originators are Gravitating Towards MortgageDirectMail.com for Resources on Direct Mail Marketing for the Mortgage Industry

(PRWEB) July 23, 2005

MortgageDirectMail.com announces it will make The Greatest Mortgage Direct Mail Campaign in the World available to all mortgage professionals who wish to use the greatest mortgage direct mail piece of all time.

Although the greatest mortgage mailer of all time has been around for several years, until now the mortgage industry was incognizant that such a mailer even existed. The pouched patching started receiving some publicity from the Mortgage Originator Magazine when it published an article about it. Based on the success of the article it is now being released for the firstly time ever to the rest of the mortgage industry. In fact there is a consummate mortgage direct mail system that has been developed for mortgage professionals. This complete system is a step-by-step how to system that has everything involve to begin a successful mortgage direct mail campaign.

One mortgage lending originator is closing over 30 loans per month every month solely from using this mortgage direct mail run. He finally discovered an unique and amazing market system to generate an endless amount of mortgage leads using this direct mail system.

If you’d like to learn more about the mortgage direct pouching system that is revolutionizing the way mortgage originators generate unexampled business and have additional resources regarding direct mail for the mortgage industry see http://www.MortgageDirectMail.com

Rumors have it that there are currently offers from national mortgage lenders to purchase the rights of this direct mail system in an attempt to eliminate all other mortgage professionals from being able to use this system.

You can read articles and learn more about the greatest mortgage mailer in the world by visiting: http://www.MortgageDirectMail.

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