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Working to death; Angel Oak social skills; Housing market 😀

By May 18, 2021 No Comments

Working to death is now a thing; 589% interest on a loan?!?!

Here’s a shocking statistic for all you workaholics out there: Working more than 55 hours a week increases the risk of death from heart disease and strokes, according to a United Nations study.

The study result has lead the World Health Organization to classify long hours as a verified risk factor and should be taken very seriously.

“With working long hours now known to be responsible for about one-third of the total estimated work-related burden of disease, it is established as the risk factor with the largest occupational disease burden,” the WHO said.

[Unrelated Read: Speaking of danger, here are some pictures of the kinds of homes that can withstand a Category 5 Hurricane with little to no damage. Interesting!]

It’s well known that Covid caused the lending business to flourish. But there’s one kind of lending business that did better than all others: Payday lenders.

According to Bloomberg, the pandemic has proven a boon for some of the largest players in the industry. Enova International Inc. and Elevate Credit Inc., two publicly traded companies that provide high-cost loans to non-prime consumers online, reported record profits in 2020, even as overall revenue declined.

“Earnings were definitely higher than we would have expected because they benefited from an improvement in the credit environment,” said Moshe Orenbuch, an analyst at Credit Suisse Group AG who covers the sector. “Consumers tended to pay back debt with funds they were given by the government.”

The terms of some of the loans are frightening: $5,000 in principal, with payments due every couple weeks at annualized rates as high as 589%!


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Angel Oak flexes some social skills in first-of-its-kind mortgage bond deal

Angel Oak Capital Advisors just successfully marketed a $231 million securitization composed primarily of non-qualified mortgages originated entirely by affiliated mortgage lenders. 

It’s the first deal of its kind and here’s why its so cool —> what’s so great about this deal is that it is considered a “social bond,” that is, a financial vehicle that serves the great good — you can read more about these vehicles, here.

The securitization pooled loans that generally offer mortgage financing solutions for underserved U.S. homebuyers who are not able to borrow through traditional lending channels. These borrowers largely include self-employed individuals, a sector of the population that has disproportionately felt the economic strain caused by the COVID-19 pandemic.

“The issuance of this securitization comes as a natural next step as part of our company-wide, socially conscious integration program,” said Rob McDonough, director of ESG and regulatory initiatives at Angel Oak, in a statement

“This focus has allowed us to not only pioneer a social bond, but also institute the due diligence necessary to ensure an impactful product,” he added. “We have dedicated significant time, energy and resources to achieve this, and we are proud of our ability to execute on this first-to-market securitization.”

It’s no surprise that Angel Oak would come to market with something so cool. Since Angel Oak’s first securitization in 2015, the firm has been a true leader in non-agency RMBS issuance, completing 23 securitizations totaling more than $7.9 billion. 


🔥 Market Mayhem, Zoom Kills, Clubhouse dies… 🔥 

With Josh Pitts & Jacob Gaffney


Let’s be honest, most homeowners don’t regret buying a home

The headline points out that Millennials are unhappy with tier home purchase. But that’s focusing on the negative. If we’re being honest, most homeowners don’t regret buying a home.

Yes, nearly two-thirds, or 64%, of millennials (ages 25 to 40) say they have at least one regret about purchasing their current home, according to a new poll of more than 1,400 U.S. homeowners from Bankrate.

Only about 45% of Gen X (ages 41 to 56) and 33% of baby boomers (ages 57 to 75) reported having some type of remorse about their current home,

 the survey found. But overall, having some dissatisfaction is pretty common: about 43% of all homeowners have at least one regret about their home.

In even brighter news, home prices are flattening out at $395,000, the first week since the start of the year that home prices didn’t climb.

“Our suspicion is that we have 4-5 more weeks of home prices staying flat or ticking up slightly, and then we’ll be back on the normal seasonal pattern,” said Mike Simonsen

CEO, Altos Research, in an email. 

[Watch him cover the numbers in this video.]

It gets better: “Inventory ticked up again this week to 314,000 active unsold single family homes – second week in a row! We expect inventory to gradually increase from here, with ~1% upticks each week for the next couple of months,” he added.


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