All Recent GLG News Analyses by Leading Experts at Maximum Value Group

Brian HershkowitzChief Executive OfficerMaximum Value Group

One more consideration - RFC's market niche may be eroding

February 7, 2008

Analysis of:GMAC considers sale of troubled ResCap | www.ft.com

This is an important article because it is detailing the possible exit from the mortgage business of another player that only dealt minorly in the subprime world, if at all.  One of the considerations not discussed in the article is the effect of the potential Economic Stimulus Plan specifically on conduits such as ResCap RFC.

Gregory SampPrincipalMaximum Value Group

Mortgage loan restrictions by zip code or county: Prudent reaction to the declining housing market or redlining?

February 5, 2008

Analysis of:Zip Code 'Redlining': A Sweeping View of Risk | www.washingtonpost.com

Fannie Mae announced on December 5, 2007 that down payment requirements will be increased by 5 percentage points over the previously allowed minimum down payment in areas identified as declining.  While Fannie’s Desktop Underwriter (DU) will generate a message on loan casefiles when it appears that the property is in an area of declining home prices, Fannie also “strongly encourages” lenders to use other tools to independently assess current housing trends.  Kenneth Harney’s article notes that Countrywide has provided mortgage brokers with county wide ratings while GMAC-ResCap has provided brokers with zip code based ratings.  The higher level approach to declining markets resulting in an additional 5% investment by the homebuyer could lock some buyers out of the market and also will likely result in lenders having to defend themselves against new claims of redlining.

Brian HershkowitzChief Executive OfficerMaximum Value Group

The Finger Pointing Continues In The Subprime World

January 28, 2008

Analysis of:Loan Reviewer Aiding Inquiry Into Big Banks | www.nytimes.com

This article is illustrating finger pointing looking for a villain, instead of "post-mortem" to find a hero.  What the industry needs is a clear plan for rebuilding the subprime securitization market.  In my opinion, a great part of that will be tied to the outsourced due diligence function, and the value those in that area add to the process.  One of the leading players in the space is now looking to be at odds with their client base. 

Brian HershkowitzChief Executive OfficerMaximum Value Group

The Real Shot In The Arm Is Buried In The Details - Mortgage Bankers Are Toasting Congress Tonight!

January 25, 2008

Analysis of:Congress Unveils Economic Stimulus Deal | biz.yahoo.com

The Economic Stimulus Act, approved today, will go along way towards its name, and stimulate the economy.  Questions of how much money, too whom, and what may have been sacrified in the cross-party negotiation will remain unanswered, but one thing is clear.  Congress has delivered a very potent set of stimulus to the mortgage markets.  By increasing the loan insuring (FHA) or purchasing (GSE's) authority to more than $700k, Congress answered a prayer and request of many of those in the industry.  The business people know that this gives them a very streamlined and efficient way to originate, fund, and deliver loans to the secondary market and service a large percentage of the population of "A" mortgagors.

Brian HershkowitzChief Executive OfficerMaximum Value Group

Many More To Benefit

January 24, 2008

Analysis of:Collapse of the Subprime Mortgage Market Shines Spotlight on Risk Management and RiskMetrics | biz.yahoo.com

This article is a very good brief about the RiskMetrics IPO, but doesn't attempt to broadly touch the many areas that are set to shine from recent events in the subprime mortgage market.

Brian HershkowitzChief Executive OfficerMaximum Value Group

Good for today, uncertain for the future

January 23, 2008

Analysis of:Asian markets rebound after Fed cut | news.yahoo.com

It is terrific that one day gains reclaimed much of the territory lost over the various Asian exchanges on Tuesday.  The significance of the instant reaction to the price cut at the Fed's lending window was one of timing.  The question is whether this particular means for economic stimulus will have a long lasting effect.

Brian HershkowitzChief Executive OfficerMaximum Value Group

US Subprime Issues Affect Asian Growth

January 16, 2008

Analysis of:Goldman lowers Asia growth forecast | www.ft.com

The reduction in US consumer spending is hopelessly enmeshed in the availability of mortgage credit, housing prices, and generalized consumer confidence.  The slowdown in the US economy, tied to these three macro forces, will greatly affect both established and emerging markets across the globe.  No where will this be more felt than in Asia.

Brian HershkowitzChief Executive OfficerMaximum Value Group

Who gets the bigger benefit - Countrywide or the rescuer?

January 14, 2008

Analysis of:Countrywide rescue: $4 billion | money.cnn.com

While many eyes are on the transaction as a proposed bailout for Countrywide, Bank of America will be solving a good many problems for themselves, while purchasing the fuel for tremendous growth.  The advantages for Bank of America are many but the largest are the resolution of their August 2007 investment of 2 billion in Countrywide for a 16% stake now devalued by the market, the availability of a full functioning nationwide sales and fulfillment channel for mortgage loans, the acquisition of a large and highly profitable servicing portfolio, advanced technology, and a top notch executive and management team.

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