The federal government dominates the mortgage market -- through direct insurance, guarantees, and purchases. It's tough to compete with them. The only comparable market I can think of is student loans where some companies have found a way to pick off the most credit worthy borrowers (e.g. SoFi). But in student loans the government does no underwriting and offers a uniform rate, some of which are quite high in the current interest rate environment. Whereas in mortgages the government underwrites and offers very low rates.
How exactly anyone expects to make money by lending out money for thirty years at 75 basis points above the risk free rate, with a zero premium call option, levered 4:1 or greater, and with low recovery percentages if the security needs to be seized is beyond me. That's even before getting into the high overhead to deal with servicing and regulatory compliance.
Not sure what you mean by "dominate", but there's $13 trillion in mortgage debt outstanding as of Q4 2014, $5T of that is held by federal agencies, and $4.5T is held by financial institutions . So it's actually a much bigger business than you imagine.
> How exactly anyone expects to make money ... and with low recovery percentages if the security needs to be seized is beyond me
which is probably why you're not a mortgage banker :).
>which is probably why you're not a mortgage banker :).
If you take a look at just how well mortgage bankers have done over the past 50 years, I'm not convinced they create any value over the course of a cycle for their employers. Indeed they seem especially prone to blowing up said employers every 15 years or so.
Picking up nickels in front of steam roller doesn't seem like a great business model to me. In fact, it looks like a pretty reliable indicator of a principal-agent problem.
Although they are significant, they are mind-numbingly boring. Compensation being remotely equal, would you rather work at a techy company like Tesla or Google... or the most boring part of the finance world.
It's like being the amtrack bathroom cleaner. Important, but shitty.
> Saeculum obscurum (Latin: the Dark Age) is a name given to a period in the history of the Papacy during the first half of the 10th century, beginning with the installation of Pope Sergius III in 904 and lasting for sixty years until the death of Pope John XII in 964. During this period, the Popes were influenced strongly by a powerful and corrupt aristocratic family, the Theophylacti, and their relatives.
Muscle memory. I find myself doing this all the time too, it is just a universal way of filtering things down, so I don't worry about it too much. Like when using lsof, sure you can use filters via lsof itself, but sometimes you just use "lsof |grep" because it is easier than looking up the correct option. The performance to muscle memory tradeoff is worth it.
=== What We Do ===
We're building web-based software that helps large investors explore and understand marketplace lending platforms (like LendingClub and Prosper) as well as broader fixed income markets (US Treasuries, ABS, MBS, CMBS, a $38 trillion market in the US alone).
=== Two Open Positions ===
1. Backend engineer: Ruby & Postgres. Connect with all the data sources and make fast analytics software.
2. Front-end: Angular / JS / Rails. Make amazing user experiences that investors use to inform billion-dollar trades.
That said, we're still pretty early so happy to talk to anybody good.
=== Benefits ===
* You'll be employee #1 so you'll be making a huge & lasting impact every day, both on the product and on our company culture.
* Competitive, market-rate salary.
* Full Health Benefits.
Task switching used to be a big issue for me, so I reassigned command+T so that instead of opening a new chrome tab, it played a discordant buzz.
Since it's harder to press that button than it is to type Command+T, I opened fewer tabs and was able to stay on task more. This is by no means scientific but curious to hear if it works for anybody else.
Los Altos and Los Altos Hills are two different cities. In some places you treat them separately, in other places you appear to be lumping them together, possibly because they share zip codes. Rents in Los Altos Hills are in the stratosphere, probably because of the minimum 1 acre lot size.