Forum Replies Created
Richard,
I am not sure what you mean "against" its books, St George is a bank and it also securitises its loans off their balance sheet, like every other financial institution that sells home loan products (not including brokers and aggragators of course). As I see it, and just to note that do not claim to be some financial wizard or anything so please correct me if I am wrong, but the big difference between non bank lenders and the big banks is the bundling volume. a Non Bank lender like Challenger or AFIG bundles their loans in say $100m or $200m lots , where the big banks, wait until they have billions of dollars to bundle up and then sell on the money markets.
Selling loans on the money market (to the investors) is also a good way for the big banks to improve their own balance sheet. If the bank has to much of its book in a certain type of loan product (say a high lvr lodocs), it can sell those loans and improve its overall book value (or balance sheet).
If you get a mortgage from the big banks, that bank would hold the mortgage over the property, but if you get a mortgage from a non bank lender (or lending institution) like ING Bank or Macqaurie, the mortgage would most likely be held by someone called Perpetual Trustees or something like that. This is basically the trustee that looks after the investors. If something ever happened to the actual lender (the company managing the loan) the trustee would take over the management and protect the investors interest. In the case of the big banks, they have such an established presents in the economy, they are trusted not to fall over and leave the investors hanging.
Moose,
There are 2 basic ways in which lenders fund home loans, the first is through their balance sheets. When someone deposits money into a bank, that bank can then lend that money to someone else, usually secured by an asset (house and or land, car, business asset etc.). This is usually called balance sheet lending. The big banks in Australia are doing most of their lending this way. The other way is through securitising. This is when you have a bunch of investors looking for a good return. The banks (and non bank lenders like Challenger and Resimac) bundle up loans with similar criteria they have already funded and sell them to the investors, while the bank manages the loan for the investors, who then collects the interest on the loan. Its a good way for a bank to raise capital and at the same time, take a cut of the interest to compensate for managing the loan for the investor. If you have a bunch of loans that go bad, like in the US, the investors either want a higher return for the risk, or just decide to buy that island they had their eye on instead. This causes the problems like what they have in the US at the moment.
I hope that answered your question
I just wanted to point out my experience with the mortgage docs being notorised. In regards to the notary, I went straight to the US consulate and paid $170US to get all the mortgage documents binded and notarised. Because I already had a US bank account where my deposit for the property was coming from, I paid it with my US debit card and didn't even pay the exchange fees. The only issue I had was I had to fly in from Brisbane to get to the consulate in Sydney. I got the docs sorted first thing in the on Monday morning, went straight to UPS at Mascot and they had them in San Antonio Texas on Tuesday their time. I have US citizenship, so I don't know exactly how the consulate would treat an Aussie at the consulate, but I don't think it would be much different if you where just getting some docs notorised.
In regards to Ben Carmona, I will never do another deal in the US without him. I have found his service essential for success. He is tenacious to the point of immortal when it comes to solving problems that arise during the process, very professional even during high stress, (and let me tell you, we had some zingers on the last deal, none of which were of Bens doing) and unbelievable when I comes to response times to emails and questions. When you live on the other side on the earth, it is sometimes hard to get a reply to an email with in 12 hours let alone 12 minutes which was the average for him and his counterpart Chrissy, who bears a large part of his success.
Give me an email I can send you some details the consulate sent me with regards to the notary.
tall2z
World Changer wrote:Each notary seal usually costs (here in oz) $80 from a solicitor .(unless u have a friend or connection who can do u a deal) that means that if there are say 8 sections on the loan docs that need notorising ,it will cost u $640. 9aLSO VERY IMPORTANT:MAKE SURE THE SOLICOTOR U USE IS REGISTERED WITH THE US CON OR DFAT WHICHEVER YOU ARE USING <OTHERWISE YOU CAN ASK YR SOL TO FAX A FORM TO THEM AND LATER MAIL IT TOO<REQUESTING TO BE ON THEIR NOTARY LIST> Then, you need to get them either verified from th US consulate which costs $40 per notary sticker(or signature) Or, you can go to the DFAT in which you must pay $60 per signature or $80 per binding and most on the mortgage docs are bindings so will cost u $80 each! so the cost is quite substantial. Say 8 notarys= $640 plus say 7 notary verifications at us consulate thats $280 or 7 bindings appostilled at the DFAT thats $560 so in total you pay either $920 or $1200 worst case scenario. It adds up ,and on top of that you prob need to take a couple of days off work to go into the city to do it. as firstly you need to go to yr solicitor then,you will find if you live a way away from the dfat of US con,you will poosibly not make it their before they shut(they open from 8 45 to 11 45 (us con) and 9-1pm (dfat) . also the DFAT wont do it while u wait.They post it back to u the next day ,so i would suggest taking an express envelope with you to ensure you get it back next day.,thus allowing u to get the docs back to the US to settle yr loan asap. Just keep this info in mind,so if u can at all possible get a loan that u can use a US POA on yr behalf it is alot easier and cheaper!! Im sure if you talk to ben he will try work something for u. Luke
