Category: Investing

Last week, the Note School: Virtual Summer Summit hosted a panel where Bob Repass discussed NPL/RPL Secondary Markets with panelists Chaz Guinn, Cody Faller and Paul Birkett.

Bob Repass – “How have you been hit with forebarance plans, are you seeing any traction from your servicers being able to get some modifications or forbearance plans or are things pretty much cash flowing the way they have been over the last several months.”

Chaz Guinn – “With the 450 RPLs, 12 months or more, payments have been received to us on behalf of our servicer, we are at a 1% default rate in terms of borrowers wanting a forbearance. We have definitely seen 4 to 10, to 12, even higher in terms of requests. Many of the borrowers we’ve been been able to require over the next handful of years are making a $4oo-600 mortgage payment, its not a $1500-$2000 mortgage payment. With that being said that definitely is a certain percentage of their income. I will say if you look at the majority of our modifications and our active pay plans, the DTI is well below 50%. I’m not going to say that’s a direct cursor to default but I think we all know the more your mortgage balance or amount of income your assessing to your mortgage payment, the more that creeps above 50% we all know that eventually is going to get a default.”

Please CLICK HERE to watch the full discussion.

Next Tuesday (June 9th) we will be releasing a new portfolio!

This will be a mixed-batch of

  • Early Stage Non-Performers
  • Late Stage Foreclosure Non-Performers
  • Active Payment Plan Re-Performers
  • Active BK-13 Performers

Please look out for our email next week when the portfolio becomes available, at which time the spreadsheet will be updated on our Portfolio Stratification page.

If you have not completed our NDA, SIGNUP HERE to receive access and email notification as soon as the portfolio is released.

Chaz Guinn speaks on a panel to discuss how Covid-19 is affecting the distressed housing market.

In February 2020, Georgia Senate passed bill allowing  “the state teacher retirement fund to invest in certain alternative investments”. The bill received 34 yes and 19 nays from the senate.

Senator Ellis Black acts as the state senator and sponsor of the bill, wanting to invest retirement assets into alternative investments such as venture capital funds, private equity, and distressed debt.

The Teachers Retirement System of Georgia (TRS) has been investing strictly in equities and fixed income. The current investment percentage is 29.8% in fixed income and 70.2% in equities. SB294, the new bill, sets a 5% target allocation to alternative investments.

In order to provide the greatest investment opportunity, the efforts would focus on a well diversified portfolio.

Georgia is the only state that did not allow TRS funds to be invested in alternative investment channels. The senate expects expanding to alternative funds to give the highest ROI possible for public workers.

The next step will be the Georgia House giving their final verdict of SB294.