Residential Mortgage Capital

Posted: Wed Jan 16, 2008 6:04 pm

This just in:

January 16, 2008

To our valued clients and associates,

I regret to inform you that effective today the mortgage banking division of Residential Mortgage Capital will no longer be accepting Wholesale loan submissions or loan locks.

As a leading lender of jumbo mortgage products, we find it necessary to suspend underwriting loans until the capital and credit markets return to business as usual and until the secondary markets resume their traditional function of buying loans from reputable independent mortgage banks like ours.

Thanks to you, we earned an excellent reputation for the quality of our loans and for our steadfast adherence to sound underwriting standards. Both of these greatly enhanced our relationships within the primary and the secondary mortgage markets.

Unlike others, we are not “imploding” or permanently going out of business. We have made the conscious choice to minimize any future financial drain on our Company by stepping away from the non-functional secondary mortgage market. In light of the market turmoil and the absence of a profitable channel for our loan products, we feel that this is a prudent step for us to take. As difficult as this decision may seem, we feel that it will afford us the greatest prospect to serve you another day.

We will attempt, to the degree possible, to honor our locks and commitments for those loans currently in the pipeline. However, given the current position of our warehouse banks, it might be prudent to immediately place those loans elsewhere. Contact your broker services representatives for the latest information.

We genuinely appreciate your confidence in us over many years.

We look forward to working with you in the future.

Sincerely,

Tom Halbach

President

Posted: Wed Jan 16, 2008 6:08 pm

translation..:

c**p, We've run out of money to fund loans, because we cant sell this poo poo to anyone. Thanks people, were shuttin down wholesale because of this... If people come to their senses soon, maybe we'll give you guys a shot after you've repented and suffered enough, and MAYBE if we can unload this c**p we've got to someone else.

love,

rescap

C-4 Joined: 08 Nov 2007 Posts: 1291

icenvegas wrote:

translation..:

c**p, We've run out of money to fund loans, because we cant sell this poo poo to anyone. Thanks people, were shuttin down wholesale because of this... If people come to their senses soon, maybe we'll give you guys a shot after you've repented and suffered enough, and MAYBE if we can unload this c**p we've got to someone else.

love,

rescap

You missed part of the translation:

P.S. If you know anyone that is hiring a public relations person, please pass my name on. No mortgage companies please.

Dyn-o-mite! Joined: 18 Dec 2007 Posts: 280

icenvegas wrote:

translation..:

c**p, We've run out of money to fund loans, because we cant sell this poo poo to anyone. Thanks people, were shuttin down wholesale because of this... If people come to their senses soon, maybe we'll give you guys a shot after you've repented and suffered enough, and MAYBE if we can unload this c**p we've got to someone else.

love,

rescap

thanks for the translation ... I think this guy went to the Mozillo school of spin control. Laughing

Posted: Wed Jan 16, 2008 6:56 pm

I'm here to help. Going to primary schools in Washington DC.. I learned c**p..
if anyone else has corporate letters they need translated, to truth, please feel free to contact me LOL.

Posted: Wed Jan 16, 2008 10:26 pm

icenvegas wrote:

I'm here to help. Going to primary schools in Washington DC.. I learned c**p..
if anyone else has corporate letters they need translated, to truth, please feel free to contact me LOL.

I'm another DC refugee. But you couldn't get me to go back there unless I was making 10 large a month guaranteed.

Dyn-o-mite! Joined: 09 Aug 2007 Posts: 281 Location: SoCal

quote from the letter: "Unlike others, we are not “imploding” or permanently going out of business"

LOVE THE "IMPLODE" REFERENCE, HUH?

IMPLODE = 2008 WORD OF THE YEAR?????

Posted: Thu Jan 17, 2008 12:07 am

absolutely !!!

Posted: Thu Jan 17, 2008 1:11 am

Did they do any option arms or subprime? It is possible that some quality lenders have been hurt by the secondary market aftershock, like Thornburg. Thornburg has almost no delinquencies in their portfolios and they still were almost unsaleable.