GUEST: BOB REPASS
This week’s guest Bob Repass, Managing Director of Colonial Funding Group, shares overall responsibility for the management of the firm, while focusing on investor relations and regulatory compliance. Bob loves to dig into market data to see beyond the surface, and today he shares his findings with you. He’s a 25-year veteran and expert in the seller finance mortgage and distressed asset industry. Over the course of his career, he has purchased over 40,000 performing and non-performing mortgage loans totaling over $2 billion dollars in volume, giving him an unparalleled track record in the industry.
There’s a very strong “iceberg effect” in today’s real estate industry. That means that people see what’s above the surface but don’t look at the much bigger things going on below the surface. Today’s guest is Bob Repass, Managing Director of Colonial Funding Group. He’s an expert at looking below the surface to reveal surprising insights that other people are missing.
In today’s episode of NoteSchool TV, Bob (along with Eddie Speed, Joe Varnadore, and Brian Lauchner) will take you through amazing statistics that reveal upcoming market trends. He’ll explain why home prices are high and have continued to climb, but he also reveals the serious delinquency problem that foreshadows a huge wave of inventory hitting the market at eviction moratoriums expire in the coming months.
Bob constantly monitors sources for news and market data that less experienced investors ignore. He shares his findings with you to give you an early warning so you can start making adjustments to your investment strategy now to take advantage of upcoming trends.
A few of the highlights from Bob’s findings include:
- Refinances are down, as most of the people who wanted to refinance have done so.
- With inventory being low, prices on homes have increased 17 consecutive months.
- The increase in April was the highest increase on record.
- Prices west of the Rocky Mountain are up the most.
- Home price growth is not sustainable based on income growth, which is not growing nearly as fast.
- Right now, there are 4x as many delinquent loans (90 days or more) as before the pandemic.
- There were about 500,000 mortgages in forbearance before the pandemic, with about 1.8 million today.
- Areas that rely on tourism (such as Las Vegas) are the hardest hit.
- About 65% of forbearance plans are set to expire in the next 90 days, so a flood of inventory should hit the market bringing prices down.
- The equity positions of the homeowners have decreased. This could boost their motivation to “turn in the keys.”
- 23 states have cut off the extended unemployment benefits.
2:15 | Joe Varnadore introduces Eddie Speed and Bob Repass to explain the latest Black Knight Mortgage Monitor report
4:05 | Bob discusses the current forbearance situation and “shadow inventory.” Highlights include: There are 4x as many delinquent loans (90 days or more) as before the pandemic, 1.8 million total, which is 1.3 million more than before the pandemic. The tipping point is when forbearance plans expire soon. About 65% of these forbearance plans are set to expire in the next 90 days.
15:20 | Bob discusses the reduced equity positions of the homeowners.
19:40 | Bob discusses 17 consecutive months of home price increases. The increase April was the highest increase on record.
21:10 | Eddie discusses the “iceberg effect” on real estate, where people only see what’s above the surface. Prices on homes west of the Rocky Mountain are up the most.
23:50 | Home price growth is not sustainable based on income growth, which is not growing nearly as fast.
25:15 | Joe and Eddie discuss the eviction moratorium and rulings from the CFPB (Consumer Finance Protection Bureau). Vacant properties can proceed with foreclosure immediately. The Supreme Court has also made a ruling on evictions.
35:00 | Brian Lauchner talks about NotesDirect and Feeding Frenzy Friday.
41:30 | Bob says not to miss NoteExpo coming up in November which will feature lots of industry thought leaders.