Xome gets a new CEO
Mr. Cooper announced that Mike Rawls will be taking over as Chief Executive Officer of Xome Holdings, the company’s real estate services subsidiary. In taking on this new role, he will transition operational leadership for the servicing segment to Tony Ebers, Mr. Cooper’s Executive Vice President and Chief Operating Officer.
Rayman Mathoda, who previously served as CEO of Xome, will remain with the company as a strategic advisor, and we wish her tremendous success as she pursues her career passion in life sciences, according to the release. Mathoda served in this position for less than two years, and saw a few, good earnings periods, and a few not-so-good.
“We thank Ray for her many contributions to Xome, including the successful integration of Assurant Mortgage Services,” said Jay Bray, Chairman and CEO of Mr. Cooper Group. “Given Mike’s track record with our servicing business, he is in a unique position to help Xome achieve its full potential as a leading integrated services provider for the mortgage industry.” Bray added, “Mike has led our servicing and originations businesses in his tenure with Mr. Cooper. He understands the process and complexities in these businesses and will work with clients to reduce pain points and deliver a better client experience.”
The $560,000 monthly mortgage payment. Only in LA.
How many kitchens do YOU need? A secret buyer of a luxury Bel Air, California home did the right thing by getting a short-duration mortgage on their latest purchase. The 12 bedrooms, 21 bathrooms, sprawling mansion comes with 38,000 square feet of living space, three kitchens, a 40-seat movie theatre, an infinity pool with a swim-up bar and a four-lane bowling alley, according to the Business Times.
The new owner bought the property for a song: only $94 million. That’s significantly down from the one-time asking price for the property at $250 million.
So how much is a mortgage payment on a home like that set you back?
“They took out a US$58.2 million, 10-year loan from HSBC Bank USA, according to property records, which would make the monthly payment about US$560,000 at prevailing rates,” the article states. Oh, is that it?
And, even though the purchase seems pretty OTT by our standards, the anonymous owner is probably used to it.
“The mansion is listed as a second home in a document,” the article said.
Americans: “Too much income inequality… but no biggie.”
Crazy money isn’t making its way to potential first-time buyers but most people are actually OK with that.
The housing finance market is awash with investor money for the time being. There are so many startups successfully raising capital. Will that change soon? Maybe not. After all, it isn’t restricted to our space. Yesterday, Tesla became the highest-value US automaker in the history of forever, by being worth $85 billion.
So it’s no wonder that more than half of Americans say there is too much income inequality. However, according to Pew Research Center, even fewer care to make addressing the issue a top priority. Additionally, among those who say there’s too much economic inequality, seven-in-ten think some amount of inequality is acceptable.
Many believe that raising taxes for the wealthy could help combat economic inequality, but not so much reducing the cost of college, or raising wages. The last two would certainly help first time home buyers get on the property ladder sooner, for sure.
For us, the most telling part is the fact that two-thirds of lower-income Americans say the Federal Government needs a large role in providing housing services. While less than half of both middle income and higher-income Americans agree with that assertion.
Equal access to housing = lower income inequality. In time more will come to see the value of this simple formula. Addressing this issue will make for a greater, wealthier America, for each and every one of her citizens.