Judge: PRMI must foot the bill for ResCap attorneys
In the midst of conflict, it’s always the lawyers who win. ALWAYS.
A judge overseeing a long-running legal battle between the liquidating trust for Residential Funding Company (ResCap) and the company that sold its mortgages leading up to the 2008 financial crisis, Primary Residential Mortgage Inc, has ruled PRMI must foot the bill for ResCap’s more than $10.6 million in legal fees plus over $3.5 million in costs.
Most of those fees – over $6.7 million – are going to Quinn Emanuel Urquhart & Sullivan, ResCap’s national counsel on the litigation.
Another $3.1 million is going to Spencer Fane and the rest is split between Felhaber and Carpenter Lipps & Leland, according to a court filing unsealed last week.
*** Cue slow clap ***
But seriously, this thing has been in litigation for a decade. That’s a long time to wait for a paycheck.
U.S. District Judge Susan Richard Nelson in Minneapolis had awarded ResCap a much smaller amount, $5.4 million, in damages in the case in August. (Source: WestLaw)
Nelson awarded ResCap nearly $2 million more in interest in the filing unsealed Wednesday, putting PRMI on the hook for just over $22 million altogether.
The Residential Funding Company – whose liquidating fund is called ResCap – filed for bankruptcy in 2012 after the housing market collapsed and trusts and monoline insurers sued it seeking billions of dollars in liability because it sold their insureds bundles of home mortgages pooled together into residential mortgage-backed securities.
🤣 MEME of the day by Sophie Vershbow 🤣
Have a funny meme? Email your favorite meme here for a chance to be featured in our next Rise&Shred.
Here’s why this average Joe became a real estate YouTube star
For every Ryan Serhant of “Million Dollar Listing New York,” there’s literally TON of imitators who try to copy that success on YouTube.
Few will make it.
But WSJ (metered paywall) profiled an average Joe who did make it, and why.
It’s a fascinating insight into how so many of us put ourselves out there, only to fall short of the goals we set for ourselves. As Gary Vaynerchuk once told a real estate agent who was prolific on social media but got no leads: “Maybe you just suck at it.”
Why do the others fail? Not all big-ticket agents were created with a lights-camera-action personality. Many come off as stiff and overly salesy to a YouTube audience, Yilmazer said.
“His own style is laid back and informational as he methodically walks viewers through all the features of each house,” the article states.
Two years ago, Yilmazer and his longtime friend Michael Ayers started the channel with just a handheld camera, filming any house a high-end real-estate agent would let them into, he said.
Yilmazer said he is bringing in between $50,000 and $100,000 a month in revenue from his YouTube channel in ad revenue alone, putting him on track to bring in more than $1 million this year if the growth of his channel continues at its current pace.
🔥 Campaign Don't Post – Loan Officer Edition 🔥
With Alec Hanson
RealtyTrac launches first-ever Individual Investor Survey, Bloomberg covers
The folks over at foreclosure database RealtyTrac just launched their own Individual Investors Survey and Bloomberg provided coverage (metered paywall).
Author Adam Tempkin crafted his coverage to be obviously investor-centric, but the survey still provided some interesting takeaways from a larger market outlook.
“The U.S. housing market has become so heated that fix-and-flippers typically used to getting squeezed by Wall Street-backed firms are now competing more vigorously with ordinary American house hunters,” writes Tempkin.
“Mom-and-pop residential real estate investors are seeing more competition from citizens looking to buy homes than from their traditional competitors, large public institutional investors, according to a new survey from real estate data firm RealtyTrac,” he adds. “The smaller investors typically vie with the Wall Street-backed firms, which bundle the loans into pools and sell bonds to investment funds, to buy homes to either fix up or rent out.”
The two biggest challenges the investors cited were lack of inventory and rising home prices, followed by competition from traditional homebuyers and rising materials costs, the survey showed.
Their outlook is that these four items will remain the biggest barriers in the next six months.
“Interestingly, access to capital wasn’t considered to be a problem, despite the impression that large institutional investors gobble up housing stock to rent out,” Tempkin wrote.
The surveyed group overwhelmingly expects home prices to continue to rise and doesn’t expect to see a huge number of foreclosures hit the market when the government moratorium and forbearance programs expire.
About 45% of the investors believe the real estate investment market is worse or much worse today compared to a year ago, but about 40% believe it will be better or much better six months from now.
Spread the Rise&Shred ❤️ and share with a friend