New Mortgage is a Duplicate of Auto Lease & 'Interest- Only' Loans
J*** B*** Esq.
My dear J****,
... As for your concern that it is 'not embraced by a major bank yet and not similar program already out there on Wall Street' is an issue that has also been identified and discussed.
This system duplicates the auto lease system used by millions of drivers who lease a car from the automobile industry. All we are doing is applying this same system to the real estate market for the first time, but it has been practiced and used by banks and drivers for decades already.
What we found is that this programs accounting and regulatory framework falls within the same bounds as the 'interest-only' loan both in its size equaling about 20% of the loan, to its terms of 2 to 5 years of time while the remaining amount sits in wait with the bank. This interest only mortgage has also been used for millions of home mortgages and therefore falls within the same parameters by way of accounting rules, regulations and legal concerns, but without the moral baggage. Homeowners actually end up with a 15% to 25% equity in the house with our system rather than paying only interest for 3 to 5 years as the interest only mortgage does.
As for the source of the economic problem, this too has also been discussed. The cause of the problem is that the mortgage backed securities have been the 3 trillion dollar gorilla in the room of the investment market. Banks and investment firms have not been able to move those securities and so have been forced to sell all their more valuable assets of stocks and bonds. (And no, they have not 'all' been sold off. They have a long way to go before all those mortgage securities have been removed from the markets and banks.)
Meanwhile, all these healthy companies whose 'fundamentals' were sound are now suddenly seeing their stocks dumped though they were perfectly healthy companies. We had many companies with raw assets worth more than the stock price they were selling at. These companies would see their stocks fall 30% to 50% and so they began cutting jobs, costs and selling good assets at fire sale prices too. This in turn lead other investors to follow suit, but what started the stampede was not fear of those companies stocks, but the need for cash by distressed banks looking to recapitalize with their better valued stock holdings.
This market has not been a fear lead sell off, but an accounting one started and sustained by the mortgage backed securities investment firms required to sell off ever greater amounts of assets to remain capitalized. This in turn fed the market to duplicate the same sell off, but it is not financially based upon a compromised company, but based upon a series of companies needing cash all because of these mortgage backed securities.
Our mortgage program takes care of both of these problems for it recapitalizes the banks with up to 25% against the total amount of their mortgage backs securities. And it will also stabilize the price of the homes back to 80% to 100% their original value. Banks will be able to sell these mortgages at their full price. As a final bonus, homeowners will have their monthly payments reduced by 30% to 50% leaving them with more petty cash and less debt. It will be the ultimate stimulus package too.
There is much more to this explanation, but in a far easier way. This letter is a roundabout way of explaining how this mortgage system will solve the housing and banking crisis as well as the economic one. It becomes much simpler to explain using the spread sheet. Lol
You should know more than most that there are great many things that are rather simple and obvious that ‘no one’ in the top tiers of the financial system have thought of yet. Its so hard to believe that this could be true of this as well, but there are always those exceptions. At least look the program over with me in a small presentation. If I'm right, you will have the hottest commodity in the market. This happens to somebody every day whether it be a new software, hardware, machine and yes, financial products too. We have now spent about 45 minutes when 10 minutes would have been sufficient if we used the spread sheet. It would have automatically answered all these issues.
Give me a call and see for yourself what I’m talking about.
Old friend,
Raghu
Record of email:
(--- On Tue, 12/16/08, John Michael <**raghu@yahoo.com> wrote:
> From: John Michael <**raghu@yahoo.com>
> Subject: This mortgage duplicates auto lease & interest only loans
> To: "J*** B***, Esq." , "Carlos Calderon" , "Melinda Willson" > Date: Tuesday, December 16, 2008, 7:56 PM)
The letter was in response to the following letter from James
--- On Tue, 12/16/08, J**** B***, Esq. wrote:
> From: J**** B***, Esq. > Subject: RE: Send his email to forward spreadsheet
> To: **raghu@yahoo.com
> Date: Tuesday, December 16, 2008, 6:26 PM
> If it is the spreadsheet you sent me he has it.
>
> His major concerns mirror mine which is not embraced by
> major bank yet and not similar program already out there on
> Wallstreet.
>
> The major concern is we don't know if it is a program
> the banks can really use because no one knows the real story
> except for probably a few auditors somewhere that may be out
> of the country but No one knows the real deal in these banks
> and what they need with the exception of a few high brass.
> This will be an obstacle because while we think we have
> something that is a solution it is not even the solution to
> the real problem because that has not even been revealed yet
> and may never be revealed. Also most of the loans have been
> sold and it is not really the banks but other countries and
> hedge funds that may not approve of the program.
>
> J***
--- On Tue, 12/16/08, John Michael <**raghu@yahoo.com> wrote:
> From: John Michael <**raghu@yahoo.com>
> Subject: They are just waiting for someone to share it
> To: "J**** B***, Esq." > Date: Tuesday, December 16, 2008, 11:25 AM
We have not marketed this because we literally just cleared it last week with the credit unions lawyers and accountants. We did not have the full confidence in the products performance to meet all regulatory and accounting standard requirements til it cleared their accounting firm.
You are literally getting this thing hot out the oven. I'm only now, this week, looking on how to market it, but we have Christmas and New Years coming up so may lose a few weeks unless someone can get it through the holiday chatter and present it to the right people.
AS for the banks, I personally can't get to the decision makers as yet though it will happen in time. As for politicians, I've taken it to DC and approached some congressman who asked me to show it to their Legislative Directors. They really liked it, unfortunately congress is leaving town til next year so there was little they could do with it right now.
It seems you are getting some sense of the scope of this products market and opportunity potential and starting to see that this is the very thing banks and gov't want, but it simply has not been brought to their attention yet.
Like I said before, its an easy sell and they will take it once someone has presented it to them. Its not selling them on the product but just letting them know that the option they have been searching for is right here for their taking. If you have the access, present it to them because they will love it.
You can also talk with the economist who helped with the numbers as well as the CU CEO who has helped develop this with his team of accountants and lawyers etc.
Raghu
--- On Tue, 12/16/08, J*** B***, Esq. wrote:
> From: J*** B***, Esq. > Subject: RE: For get questions, lets have ph. conference
> To: **raghu@yahoo.com
> Date: Tuesday, December 16, 2008, 10:16 AM
> I can't understand if all issues have been resolve why a
> major bank hasn't picked it up or a politician. Why
> don't you have a calling solution going b2b to sell
> this?
>
> -----Original Message-----
> From: John Michael [mailto:**raghu@yahoo.com]
> Sent: Tuesday, December 16, 2008 4:50 AM
> To: J*** B***, Esq.
> Subject: For get questions, lets have ph. conference
>
> This is excellent J****.
>
> I"m really happy your buddy looked the material over
> because as I think your friend is beginning to realize, this
> is by far, the hottest thing out there. And the market is
> all his.
>
> As for the market for the banks, its huge. Both Chase &
> BOA have about 400,000 homes each underwater and think that
> Citi has about the same. If he could sell it to a bank like
> them for a small fee of just a couple hundred dollars per
> loan, the commission would be about $8 million per bank. We
> could be walking off with $20 million by months end from
> just these 3 accounts.
>
> As for the banks, its a simple program and an even easier
> sell and therefore could be closed before new years. The
> banks can use the homeowners to pay off 20% of the loan
> while the home owner has thier mortgage reduced by 30%. The
> home owner now has equity in the home or a property that
> comes in at market value in just 4 years. Its the ultimate
> Chrismas gift for America.
>
> The bank gets to pocket this 20% today thereby
> recapitalized banks within 30 to 60 days of this
> program's introduction with a 20% cash infusion against
> their entire real estate holdings. Wall Street and banks are
> stablized. It beats any other financing program available
> today for both homeowners and banks.
>
> I look forward to hearing from your partner. Rather then
> simply tyring to formulate the questions, I find it far more
> productive and use of time if people simply hear the 7
> minute presentation. It will answer 90% of all questions and
> allow people to understand the program more easily. When
> people try an review it on their own, they have a tendency
> to make it more complicated then it actually is-especially
> mortgage brokers who generally tend to mistake it for an
> interest only loan which changes the formula entirely.
>
> As a final point, I have had a satisfactory answer for
> every question or issue that has been raised by bankers,
> mortgage brokers, accountants, lawyers, homeowners, Wall
> Street investors/brokers etc. In short, we have likely
> already resolved any issues he could identify. We are happy
> to share all these details.
>
> Let's set up a meeting today.
>
> bro
>
> Raghu
>
>
>
>
> --- On Mon, 12/15/08, J*** B***, Esq. wrote:
>
> > From: J*** B***, Esq. > > Subject: RE: Can give exclusive or hire to do some or
> all marketing
> > To: **raghu@yahoo.com
> > Date: Monday, December 15, 2008, 4:58 PM
> > My partner who is the banker/mortgage guy likes what
> he is initially seeing an will have some additional
> questions and then a phone conversation with you. He can sell it to
> the banks because of his contacts but he has a few
> additional questions I'll shoot over when he composes them
> and then the two of you should get on the phone and go over it.
> >
> > J****
> >
> > -----Original Message-----
> > From: John Michael [mailto:**raghu@yahoo.com]
> > Sent: Monday, December 15, 2008 11:07 AM
> > To: J*** B***, Esq.
> > Subject: Can give exclusive or hire to do some or all
> > marketing
> >
> > J***, that would be incredible.
> >
> > We can give you an exclusive (on the West Cost for
> example) of this product or even just hire your company to take
> over the marketing if you have or intend to create a
> national outreach of your service. What ever time frame works
> best for you, just let me know. Jan. is fine if that suites you best.
> >
> > It would not require any capital investment, rather a
> > performance minimum.
> >
> >
> >
> > --- On Mon, 12/15/08, J*** B***, Esq. wrote:
> >
> > > From: J*** B***, Esq. > > > Subject: RE: Here's spread sheet & patent
> > > To: **raghu@yahoo.com
> > > Date: Monday, December 15, 2008, 1:50 PM
> > > Once I understand the program and if we can use
> it I can create a sales team to sell it to the bank brass
> or do lunches with them and get it out there but no
> time until mid
> > > January as we are scaling up right now with 100
> > man/woman sales team and then processors and negotiators
> for various debt.
> > >
> > > I'll be back soon...hopefully.
> > >
