IPOs??? LMAO; Most Americans are struggling with $$$
Roaring stock market prices and high home values are leading many to predict we are pushing markets into global bubble territory. And, because global central banks in developed economies are showing no signs of
easing up on Quantitative Easing, we come closer to the bubble popping each day.
“The major central banks say they had no choice [to initiate QE] because the alternative would have been a financial meltdown that would have made last year’s economic collapse even worse than it was,” according to coverage in Yahoo! Finance. “Their critics say QE as currently designed widens the gap between rich and poor, fails to put money into the bits of the economy that really need it, and has led to the creation of colossal bubbles that are bound to burst.”
We are seeing this statement in action first hand. Underscoring the shaky finances of many Americans, Bankrate’s January Financial Security Index finds that fewer than 4 in 10 U.S. adults could absorb the cost of a four-figure car repair or emergency room visit by tapping into savings.
Fully 18 percent of respondents said they would put the expense on a credit card and pay it off over time, incurring interest charges. Another 18 percent said they could handle a surprise expense without borrowing, but would have to make room in their budgets by scrimping on other items.
Meanwhile, the money for IPO investments is red hot, with California-based LoanDepot Inc. filing for an initial public offering, the latest mortgage lender to do so amid record-low mortgage rates and some five years after scrapping similar plans. More on this story as it develops.
According to MarketWatch, loanDepot was launched in 2010 with a “digital-first approach” and “to disrupt the legacy mortgage industry and make obtaining a mortgage a positive experience for consumers,” the company said in the filing. LoanDepot originated $79.4 billion of loans in the twelve months ended Sept. 30, it said.
It listed revenue of $1.3 billion for all of 2019 and $3.3 billion for the first nine months of 2020. Net income for the first nine months reached $1.47 billion, from $18 million in the same period in 2019.
Also notable: LMF Acquisition Opportunities, a blank check company formed by LM Funding America targeting the financial services sector, filed on Friday with the SEC to raise up to $75 million in an initial public offering.
And the funny part is they plan to trade under “LMAO.” Cute. But when this bubble bursts, no one will be laughing.
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Reggora raises $$$, SitusAMC buys ReadyPrice
Home prices and the stock market aren’t the only places where there are ample opportunities and liquidity.
Reggora, an appraisal software company that is modernizing residential real estate valuation, today announced the successful completion of its $30 million Series B funding round led by returning investor Spark Capital, a venture capital firm responsible for early-stage funding of numerous successful startups including Twitter, Wayfair, Plaid, and Slack. The round also featured contributions from returning investors Boston Seed and 1984. New investors included Shine Capital and Greenpoint Partners, among others.
“Reggora continues to exceed expectations from a customer growth and product development standpoint,” said Alex Finkelstein, partner, Spark Capital, in a statement. “Reggora’s ability to scale and innovate, along with their clear vision for the future of appraisals, makes us excited to continue our partnership.”
Reggora provides technology that equips both lenders and appraisal vendors with comprehensive automation to 
streamline the entire appraisal process. Reggora also integrates with major LOSs and POSs such as Ellie Mae Encompass, Black Knight, and SimpleNexus.
SitusAMC Holdings Corp. is growing again. SitusAMC was looking to expand its residential loan origination support offering following the acquisition of ComplianceEase in September 2020 and the launch of the firm's loan fulfillment offering in late 2020.
Now, the real estate service provider said it has acquired ReadyPrice and its innovative mortgage technology that seamlessly connects MLOs and lenders to facilitate more efficient loan originations, SitusAMC said in a statement.
Launched in 2020, ReadyPrice's mortgage technology enables MLOs to manage and choose pricing, run automated underwriting, and deliver approved loans to lenders at no cost to the MLO. For lenders, ReadyPrice provides an efficient way to scale their businesses, ensuring wholesale lending rates are included in every pricing engine search while providing brokers with the easiest path to directly transfer DU approved loans. ReadyPrice technologies support FNMA, FRE, FHA, VA, USDA, VA, and non-agency loan originations.
🔥 Rise&Shred Weekly – Episode 002 🔥
With Josh Pitts & Jacob Gaffney
Major mortgage players are rethinking political donations
Rise&Shred doesn’t like to be political, but sometimes an issue compels coverage and that’s what we have right now. Last week, politics rocked the world. This week big money wants to rock politics.
Yesterday it began to come to light that major mortgage financiers, such as Blackrock, Wells Fargo, Citi and JPM Chase, are among the growing list of corporate identities that are re-thinking the way in which they donate to political parties.
BlackRock, whose charitable funds own PennyMac, made an announcement in a memo to its employees, noting its decision was spurred by “the horrific events in the nation’s capital.” (WaPo paywall)
Some of the entities are doing it across the board:
—> JPMorgan Chase and Goldman Sachs announced six-month pauses in contributions for Republicans and Democrats.
—> Citigroup told employees it is suspending PAC donations to all lawmakers during the first quarter.
Others are being more targeted, singling out a particular political party to not give their money too. Seems like this 
should be a fairly effective strategy and we are already wondering how the people in mortgage will react to this newfound corporate behavior. Email us your thoughts and have a great day!!
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