Underwriting market risk when originating notes or pricing your offer
I am trying to figure out how this data can help me. I am a nationwide note buyer. I buy and sell performing and non-performing notes. How can i use this data, which plan would be best, etc.
In the same way you underwrite your borrower, you need to underwrite your market.
After all, its far more likely that your MARKET RISK is what causes your note to go bad, far more than your borrower risk.
Few will walk away from a property that has lots of equity, but as we saw in the last crash, "everyone" is willing to leave you, the note holder, holding the bag if the borrower has no equity.Each local market is different, there are declining markets right now all across the country.
Do YOU have any loans in those markets?
Secondly, how do you price your notes? Do you pay the same discount when you're buying notes, regardless of the market?
Do you charge the same terms when you're originating loans no matter the market risk?
If you answered "yes" to either of these, you need HousingAlerts. In a single click, you can know the risk you're taking for every market in the US, You may even want to target the safest markets going forward and avoid those markets where you're likely to get clobbered.