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Wells Fargo; Veros’ prediction win; Wall Street Bets on UWM 👏

By May 19, 2021 No Comments

Wells Fargo staffer gets hard time for stealing from clients

This guy. What a piece of work.

A former Wells Fargo broker has been sentenced to 27 months in prison for participating in a scheme that involved defrauding about 40 clients of more than $450,000, according to court documents.

Herrera asked the clients he was advising — many of whom were older people or communicated with Herrera in Spanish — to sign blank withdrawal slips that he later completed and presented to bank tellers at the financial firm’s branches, the complaint alleged.

He would direct bank tellers to withdraw the funds from the clients’ accounts in the form of cashier’s checks that enabled him to then apply the checks against personal accounts that he and a relative had at the financial firm.

Herrera went on to use the stolen money for his own purposes without the clients’ knowledge or authorization, the complaint had alleged.

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Who correctly predicted what COVID would do to house prices?

The majority of housing economists predicted a home price collapse as a result of the pandemic.

Back at the start of the global pandemic, when the rapid spread of COVID-19 forced the U.S. to all but slam shut, grave concerns emerged from a slew of leading figures across the housing economy about the vitality of the real estate marketplace. 

One top housing economist was so concerned by the potential fallout from the virus’ impact that he predicted the U.S. could see a “complete

 shutdown in the housing market.”

He was not alone in this level of thinking. The majority of housing economists predicted a home price collapse as a result of thepandemic.

However, in early 2020, Veros correctly predicted the residential real estate economy would remain resilient despite worries of a global pandemic.

Read the whole report here!

🔥 Settlement Secrets 🔥 

With Josh Pitts & Pam Faulkner

Wall Street Bets gets bullish on United Wholesale Mortgage

Earlier this week Rise&Shred covered an analyst with a less-than-favorable take on the future business projections for United Wholesale Mortgage. Despite the note, UWM stock actually began to perform rather well.

This led some more analysts to ask why UWM was doing better than expected.

We know why.

WallStreetBets, a thread of day traders on Reddit, with more than 10million followers, posted a thread on the UWM versus Rocket (RKT) business models declaring that United Wholesale “ has a business model that should weather the storm much better.”

Here’s the post that caused UWM to start buzzing:

“This pure focus on wholesale means UWMC does not spend as much cost on the servicing and advertising necessary to sustain a large retail business, like for RKT. Overall, UWMC actually has had consistently higher net income margin than RKT, currently sitting at 68% vs. 58% for RKT.”

“UWMC's focus on wholesaling and working entirely with brokers makes it much easier for it to pivot to home purchase originations, which Freddie Mac actually predicts will grow 16% by 2022. Home purchases are more complex than refinances and the value of using a broker shines in those cases. In fact, UWMC is already more heavy on home purchases than its competitors. In the most recent quarter, 25% of its volume came from home purchases.” 

“Furthermore, a rise in interest rates may actually benefit UWMC in that the value of the loans they generate will be higher due to the higher cash flows,” the post concludes, warning NSFW language in the thread.

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