October 16, 2025 • 35 mins
The conversation explores the transformative impact of artificial intelligence on the real estate and banking sectors. It discusses how AI is reshaping property searches, mortgage approvals, and the overall buying and selling process. The hosts also delve into recent market reactions to banking fraud cases and the implications for regional banks. They highlight the importance of understanding loan issues and the role of AI in detecting fraud and customizing loan options. The discussion concludes with predictions about the future of AI in lending and real estate transactions.
Chapters
00:00 Introduction to the AI Impact on Real Estate
02:27 Market Reactions and Banking Sector Concerns
05:23 Understanding Private Credit Markets
08:34 The Cockroach Theory in Financial Markets
11:03 Exploring Distressed Assets and Bank Risks
13:37 The Role of First Priority Liens
15:56 The Consequences of Fraud in Lending
18:46 Wrap-Up and Future Implications
27:07 Weekend Plans and Family Activities
29:38 Current Events and Social Issues
30:33 Market Trends and Economic Insights
34:07 AI's Impact on Real Estate
41:31 The Future of Lending and AI Technology
👉 Watch this episode on YouTube: www.youtube.com/@thejonsanchezshow
👉 To learn more about retirement planning and wealth management in Reno, visit: sanchezgaunt.com
Compliance Disclosure: This program is for informational purposes only and should not be considered investment, tax, or legal advice. The views expressed are those of the participants and may not reflect the views of Sanchez Gaunt Capital Management. Investing involves risk, including the possible loss of principal. Past performance is not indicative of future results. Always consult with a qualified financial professional regarding your individual situation before making financial decisions.
Chapters
00:00 Introduction to the AI Impact on Real Estate
02:27 Market Reactions and Banking Sector Concerns
05:23 Understanding Private Credit Markets
08:34 The Cockroach Theory in Financial Markets
11:03 Exploring Distressed Assets and Bank Risks
13:37 The Role of First Priority Liens
15:56 The Consequences of Fraud in Lending
18:46 Wrap-Up and Future Implications
27:07 Weekend Plans and Family Activities
29:38 Current Events and Social Issues
30:33 Market Trends and Economic Insights
34:07 AI's Impact on Real Estate
41:31 The Future of Lending and AI Technology
👉 Watch this episode on YouTube: www.youtube.com/@thejonsanchezshow
👉 To learn more about retirement planning and wealth management in Reno, visit: sanchezgaunt.com
Compliance Disclosure: This program is for informational purposes only and should not be considered investment, tax, or legal advice. The views expressed are those of the participants and may not reflect the views of Sanchez Gaunt Capital Management. Investing involves risk, including the possible loss of principal. Past performance is not indicative of future results. Always consult with a qualified financial professional regarding your individual situation before making financial decisions.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Good Thursday afternoon to you.
Speaker 2 (00:01):
Welcome to the John Sanchez Show on News Talk seven
to eighty k which it's a pleasure to be with
you one more day in this crazy work week, a
great bleasure to be with my co host around the horns.
We shall go. Let's start with Dewhite Millard Highlands Mortgage.
How are you, my friend?
Speaker 3 (00:13):
I'm doing fantastic, John, How are you doing today?
Speaker 2 (00:16):
You should be Your rates tumbled today, my stock market
tumble and your rates tumbled.
Speaker 1 (00:21):
Dog gun, it's not supposed to be there far.
Speaker 3 (00:23):
It's been too locoming, so we're hoping for more.
Speaker 2 (00:27):
I hear your brother, I hear your Corey individually. Hey
doing big, Cie.
Speaker 4 (00:31):
I'm doing good, doing good.
Speaker 1 (00:32):
Glad to hear it, Glad to hear it. Alrighty, folks,
let me tell you what we have lined up for you.
Speaker 2 (00:37):
We're gonna get right into it because we had a
lot of things to talk about if you joined us
on Tuesday, we began this topic, which is the AI
world in regards to real estate, right from home searches
to mortgage approvals. Artificial intelligence is absolutely reshaping how Americans
buy and sell real estate. Today, we are going to
continue our discussion that we started on Tuesday, because we
(00:59):
only got to a couple of our seven points that
we wanted to cover on how AI is changing the
game for both buyers sellers, and of course the whites
world of lending and what it means for you in
your real estate transaction. So so I've been looking forward
to this. Guys, can't can't wait. We'll recap the I
think three points that we got through on Tuesday and
(01:21):
then get down to our final four points. But it's interesting.
But first, guys, let's again so we don't run out
of time. Now, I'm gonna get right to the stock
market side of things today. You know, we've been facing
a situation. You've heard us say this many times on
this program. Corey, just refresh my memory that we just
(01:43):
said it the other day. And then you even had
Jamie Dimond, Remember I joked on and I think it
was Tuesday that Jamie Dimond, the most you know, probably
well respected CEO of any company in the world, said
the same thing we've been saying, the cockroachs theory. Now
what do I mean by this, Well, we had an
okay session going today, then all of a sudden, coming
(02:04):
across the newswires is news from the banking sector. Now,
what happened two companies of local as well as national presence,
but very local, Zion's Bank Corp. And Western Alliance. Let
me tell you what the stocks did and how it
impacted the market today. Okay, Zion's Bank Corp. Down thirteen
(02:25):
point one four percent, seven dollars ten cent loss to
forty six ninety three a share. Western Alliance wal of course,
the symbol ten point eight one percent lost, down eight
dollars and fifty two cents to seventy thirty two. The
two companies disclosed that they were victims of fraud involving
loans that were tied to funds that invest in distressed
commercial real estate. This is according to Bloomberg. Zions disclosed
(02:48):
fifty million dollars charge off for one of the loans,
which would be reflected in the company's third quarter earning
statement and ETF that we followed that tracks all of
the banking names out there are most of the banking
name fell six point three. In response to that, mister Edge,
you had a few points that you wanted to mention
about this story.
Speaker 5 (03:07):
Well, you know, we we talked about it a couple
of weeks ago. So you had these two big bankruptcies
in the car world, the auto parts.
Speaker 4 (03:14):
And I think what car dealership if I remember right.
Speaker 1 (03:17):
Lenders, yeah, lenders, yeah, yeah, prime lenders.
Speaker 4 (03:21):
Yeah.
Speaker 5 (03:22):
That's an interesting story in myself because their biggest client
or illegal aliens. So I mean you kind of figured
that one might go bust on it. Anyway, So the
big auto brands was it's a huge bankruptcy. And so
when the creditors got in there a couple of weeks
ago to start figuring all this stuff out, turns out
there's billions and billions of dollars off balance sheet private debt,
(03:42):
and they're they're getting debt on their accounts receivable, they're
getting debt on everything.
Speaker 4 (03:47):
But they're doing it multiple times. You alluded to it
on Tuesday.
Speaker 5 (03:50):
If I have an account receivable and I'm gonna lever
it up and get you know, a billion dollars or
five hundred whatever, I'm gonna get on it.
Speaker 4 (03:57):
Well, they were doing that to multiple lenders.
Speaker 5 (04:00):
Multiple lenders were landing on it because it's outside the norm,
it's the private credit markets. And to me, I just
listened to it in the background and look at it
a little bit. But the private credit markets they've been
talking about a lot and how big they are. Nobody
really knows how big they are. Where the tentacles go.
But the to me looking at it from a I
don't know a global aspect of it, you need the
(04:22):
private credit markets because the traditional credit markets are so
tight and the interest is high.
Speaker 4 (04:27):
Yes, so it's it's and.
Speaker 2 (04:29):
It's a lucrative niche I mean, let's be honest. We
anything that's not lucrative. It's a very lucrative.
Speaker 5 (04:33):
It's lucrative because you can charge crazy rates. But the
fact that you need it points to the fact that
there's something not really great going on in the overall economy,
in my opinion, because otherwise these people wouldn't go there
and pay those crazy rates.
Speaker 1 (04:47):
So well, let's be careful on that point.
Speaker 2 (04:50):
Let's go back to tricore the I'm just going to
kind of call them a hard money you know, when
I was in the autolnding business, we had other names
that I can't say on the air, but uh, it
was called kind of a hard money lender. And you
hit it right on the right on the head, Cort,
And I'm sorry to interrupt you on this.
Speaker 1 (05:05):
Uh uh.
Speaker 2 (05:06):
You know, they lent their their prime market were illegal aliens, right,
they didn't care, and they would charge interest rates commensurate
with the risk that they felt they were taking. So
my point of bringing this up and rudely interrupting you
is they that was their target market. And that's that's
what we have to watch right when you start talking
about private credit. And let's kind of take everybody behind
(05:28):
the scenes a little bit, because you know, I'm going
to go back to my GMAC days, right, my my
first real job I ever had out of high school,
and I'm out of college and so on and so forth,
and you know GMAC at that point, this was late eighties,
early late eighties when I was there for five years.
You know, they were the largest borrower of the Federal Reserve, right,
(05:48):
so they would go right to the Fed and borrow
the money and then lend it out, you know, and
auto loans, right, But did they Because I was a
credit manager, I was responsible for my final position of
approving loans.
Speaker 4 (05:59):
Right.
Speaker 2 (06:00):
Dwight talks all the time about automated and underwriting. We
just started to get into that at that point. A
lot of it was still done manually, So yeah, you
would look at it. It's you know, a dealership would
would facts over in those days, the facts over the
auto deal and you'd look at it. Of course you'd
pull the person's credit, but like Dwight is so good
at doing, you know, you have to look beyond just
what the credit score is. Is this somebody that's responsible
(06:21):
or you know, do you want to lend on the
money or not? The answers no, great, you pass on
the deal, and they would go to a company like
a TRICORPS not so much again when that focused on
the legal aliens, but but more so one that kind
of handled the again, the subprime market. So these guys
look at it. But to your point, Corey, they're back.
Speaker 1 (06:38):
You know what do they do.
Speaker 2 (06:39):
They get their money from Wall Street. Wall Street goes, hey,
you know, Dwight, you're a subprime lender to you know,
in the auto industry. So guess what we're going to
You're you're wholesal a line of credit. It's going to
be at you know whatever, you meaning your cost of
money nine to ten percent. Dwight goes, hey, no problem,
because I'm going to go charge you know, Joe Blow
who's a subprime borrower. I'm going to charge them twenty
percent and I'm going to make a ten point spread,
(07:00):
and hey, everybody's happy.
Speaker 1 (07:01):
He got a car.
Speaker 2 (07:02):
We're making a bunch of money until Corey, like you
just said, something like this happens.
Speaker 5 (07:06):
So continued, well, and it rolls up and again back
to the auto part dealer. You had a big bank, Jeffreyes,
that had a bunch of money invested in there and there.
The way they do it is they have a separate
kind of entity, if you will, on their balance sheet
that shows this investment, but they're getting even that money
from other banks. So, as we've talked about multiple times,
you don't know where the tentacles go because you're not
(07:28):
sure where all the money's starting them. But this is
how it starts unraveling itself, because I think even JP
Morgan and some of them called for redemptions from Jeffrey saying, hey,
give us our money back.
Speaker 4 (07:38):
Well, we know you still have some before the sin
gets out of hands.
Speaker 2 (07:42):
So exactly, I would like to I'd like to take
just a moment, guys, and I want to read to
you because Bloomberg kind of broke this story to if
I remember correctly, so I want to give them the
full credit. Let me read you this very quick story
from Bloomberg so everybody can understand, and then the reason
we're doing this again. This brought the market down. We
lost three zero one on the Dow, one hundred and
seven on the Nasdaq, and a forty two point loss
(08:02):
on the S and P five hundred. Not significant numbers
by any means, but as we've been warning for weeks,
actually probably months, the cock Roads theory, this is what
we have to be cognizant about as investors, portfolio managers
like myself, and that is where there's one problem lurking.
There could be meaning more exactly to Corey's point, which is,
we don't know where the tentacles go, right. We don't
(08:22):
know because this is the way Wall Street works, folks.
You know, let's say let's let's say Corey, myself and Dwight.
Let's say we're three major Wall Street firms. Well, it's
just like the world of insurance, right when you hear
the you know, the all states, the state farms, the
farmers of the world crying the blues and there's a
major disaster, like oh my god, we're writing checks for
billions of dollars and so on. Neah, okay, hold on
(08:42):
a second. You reinsured, mean you have other insurance companies
that are also pain you know. And that's the way
Wall Street works. It's like one company lends to another,
who lends to another, who lends to another. You've got
all these hands, or to Corey's point, tentacles that are
involved in the deals. And that's why you have to
be careful when and you know, I want to I
want to give kudos to Cory. The last couple of
(09:03):
days we've been talking about, you know, the tricrep situation.
You know that that again that that some prime lender,
and then the other situation with the auto parts company
their names escaping it at first brands.
Speaker 1 (09:15):
That's what it is. Because again these guys are all
intertwined together.
Speaker 2 (09:20):
So let me let me see if I can get
through the story real quick before we go to break,
and then we'll continue on because again this feeds right
into the into the market action today. So this is
according to to Bloomberg, So listen closely. Shares of two
regional banks tumbled Thursday after the company said they were
the victims of fraud on loans to funds that invest
in distress commercial real estate, fueling concerns that more cracks
(09:41):
are emerging in the credit markets.
Speaker 1 (09:43):
Zions Bank Corps.
Speaker 2 (09:44):
Sank twelve percent after it disclosed a fifty million dollar
charge off for a loan underwritten by its wholly owned subsidiary,
California Bank and Trust in San Diego. Okay, keep this
in mind, fifty million. I'm going to look at the
balance sheet of Zions. I don't think that's a significant
can number, but again, this is a subsidiary that went
the money. Western Alliance Bank Corp, also a stock of
(10:07):
local or company of local and national presence, tumbled almost
eleven percent after they said it may loans to the
same bars. Okay, let me Actually, I'm going to stop
there because I can't get through the rest of this.
So now you have Zions and you have Western Alliance
Bank Corp. All of a sudden realizing we just lent
money to the same people. Now, what could be a
problem with that. You'll find out when we come back.
(10:28):
Let's turn it over to Kristin Snow right now Traffic Center. Hello, Kristen,
Welcome back to the John Sanchez Show on the talk
seven to eighty kait two with Corey Edge of Agriility
to White Mollard of Highlands Mortgage. Once again, we lost
three on one on the down and now as that
gave up one oh eight in the SMB down forty two,
it's got the commodity side and the bonds Dwight, and
then we're going to come back to one of the
(10:49):
driving factors there. There was a number of things that
happened today, but this kind of was the nail and
the coffin that drove us down. The story that we're
just starting to share with you in regards to Zion's
Bank Corp. And Western Alliance Oil pull back pretty sharply today.
Dollar twenty five lost fifty seven oh three a barrel. Man,
it's gonna feel good at the pump if that holds
gold continuing, It's run one hundred dollars and seventy cent
(11:10):
game four thousand and three oh five fifty and missed
them all.
Speaker 1 (11:13):
Lart.
Speaker 2 (11:13):
As I said at the beginning of the show, you
got to be smiling, brothers. Seven basis point loss on
the tenure. You broke four percent three point nine eight seven.
Speaker 1 (11:22):
Man, how do you find that brother? How do you
do that?
Speaker 3 (11:26):
You can't. Well, you take it while you get it right.
Speaker 6 (11:28):
So, I mean the good news is, John, is as
of Thursday, the thirty year fixed according Mortgage News Daily,
is six point two three.
Speaker 3 (11:37):
So that's a ten basis points improvement just from Tuesday.
Speaker 6 (11:40):
So from yesterday and today, your fifteen year five point eight,
your thirty year FHA five point nine eight, so you
broke that six percent barrier, and your your VA is
at five point ninety nine.
Speaker 3 (11:52):
So I mean these are just but you know, John,
I got to.
Speaker 6 (11:55):
Tell you since Tuesday and my travels, it's still longer
the rate anymore, believe it or not. I mean, people
are worried about their jobs, they're worried about their they're
worried about other economic issues, you know, cost of living
things like that. So I mean, yes, the rate's going
to help. I'm not you know, I denied that a
long time ago, and you guys corrected me.
Speaker 1 (12:15):
But uh, you know, but it's a combination of things, right.
Speaker 3 (12:18):
It's a combination. So but what I'm saying is though
the rate, the importance on the rate has kind.
Speaker 6 (12:24):
Of you know, done this and other items of concern
have taken over so I will take it. But it'll
be interesting to see. I wouldn't be overly surprised if
you even dropped inside of six and we just didn't
see the app I mean, you're gonna see a little
bit of application. Are a little bit of a increase
in applications. But I don't know when to be off
the charts. Yea too could because of other factors lurking
(12:47):
out factors.
Speaker 2 (12:48):
Right, well, as long as this government stays shut down.
It seems like the bond traders like bringing these rates
down because again that tenure breaking three or four percent. Yeah,
I haven't seen that in a long time. All right, Well,
that's great news, DW. I thank you for bring us
out to day on the mortgage side. Let's get back
to our story from Bloomberg once again. If you just
joined us mid session today, some breaking news came out
(13:10):
again two stocks of local as well as national presence.
And know many of you probably have banking relationships with
these companies, don't fret. I you know the boys and
I were talking about during the break, this really is
just a somewhat of a drop in the bucket. Is
if you look at the overall value of their companies.
But we're talking about Zions Bank Corp. Against stock sinking
nearly twelve percent. They disclose a fifty million dollar charge
(13:32):
off for a loan that was underwritten by a wholly
owned subsidiary of the company that's called California Bank and
Trust that's located in San Diego, Western Alliance Bank Corp.
Tumbling almost eleven percent after they said they made loans
to the same borrowers. Now, just to put this in perspective, folks,
to stop real quick, so Zion's Bank Corp.
Speaker 1 (13:51):
Again.
Speaker 2 (13:51):
They just they're going to charge off fifty million dollars
in their next quarterly report. The market cap of the
company six point ninety two billion dollars fifty million. Okay,
it's a slap on the hand from Wall Street, you know,
as far as earnings per share. But in the big
scheme of things, you know, by no means please don't
(14:12):
make a run on the bank or anything else. Our
biggest concern is more of these situations can begin to
unrise or unravel, as we keep saying the cock roots theory,
where there's one, there's more, and this could be the
beginning of it. We're again not alone, Jamie Diamond the
other day said the same thing. Okay, so let's get
back to the story now once again. I'm gonna read
(14:33):
this over one more time. The disclosure. The disclosure adds
to the other recent loan blow ups as we were
touching on earlier, including CYB subprime auto lender Tricore Holdings,
which filed for bankruptcy last month and triggered a near
total wipeout on some depth. That was followed by the
bankruptcy of autopart supplier First Brand. If those of you
(14:53):
that don't know First Brand, you know the products fram
auto Filters is one of them in a lot of
name brands that many of you probably purchased and parts
for your car. JP Morgan and Fifth Third Bank Corp.
Disclosed hundreds of millions of dollars in combined losses tied
to Tricorp or Tricolor excuse me, that's the auto lender,
while Jeffrey's Financial Group disclosed exposure to First Brands. Now,
(15:16):
while those hits can be easily absorbed by the biggest
US banks, that totals are more worrisome for regional lenders. Quote,
if JP Morgan has a loan problem with Tricolor, it's puny,
according to Mike Nao, very well respected Molster analysts Elvert
Wells Fargo said in an interview. But if smaller banks
have problems with these loans, it takes more of a hit,
Zion said in a lawsuit. The California Bank and Trust
(15:39):
is owed the money from two investments tied to Andrew
Stupen and Gerald Marsall, among other parties. California Bank and
Trust provided two revolving credit facilities to the borrowers in
twenty sixteen and twenty seventeen, totally more than sixty million
dollars to finance the purchase of distress commercial real estate
mortgage loans. According to the l lawsuit, the terms gave
(16:01):
the bank quote first priority perfected security interest in all collateral,
including each mortgage loan purchased by the investment funds, Corey
or Dwight, whatever you want to jump in, explain to
the audience first priority, perfected security interest in all collateral,
including each mortgage loan purchase.
Speaker 1 (16:19):
What does that mean English?
Speaker 5 (16:20):
I mean, if it's true, that means you're first in line,
So you're the first deed of trust, hoold or the
first lender on that property. So if you go through bankruptcy, foreclosure, whatever,
there's no other loans in front of you. Sometimes that
gets changed on just the irs can jump them, local
taxes can jump them. If you go into bankruptcy, you
get what's called dip dip financing, debtor and possession that
(16:42):
jumps in front. So there's some stuff that can jump
in front. But it's good if you have a first position.
Speaker 3 (16:48):
John, I got a question though.
Speaker 6 (16:49):
I mean, when you start saying that this was a
lender that delta in distressed properties, right right, I mean, okay,
so you already now know you've got I mean, now
you already know you got a problem. Generally when you
make terms to those type of things that usually higher
percentage rates, higher point.
Speaker 3 (17:10):
I mean, you just stick it to them even worse
than what they had. So I mean, sometimes you kind
of know the devil you're dancing.
Speaker 6 (17:18):
With, don't you.
Speaker 1 (17:18):
That's the point I'm trying to get across.
Speaker 5 (17:21):
But here's the thing to remember in these because I've
looked at these these guys, they were buying distressed assets.
They weren't technically distressed to themselves. That was their business,
was buying distressed stuff. So from the banks perpective look good.
But I think I mentioned to you guys we talked
on air. I was with a guy three months ago,
I think, big property owner down in the LA area,
(17:42):
multiple malls, ones of stuff, and he told me. We
had a very frank conversation. He goes, I've got maybe
two years eighteen months right around there. That is as
long as I can keep doing what I'm doing before
all my stuff goes back to the bank because I'm
not making any money my stuff, you know, I'm dipping
into other stuff to keep these things alive. And to me,
(18:02):
that's the cockroach, right Like that's if I had if
a little old me had a conversation with a huge
guy saying that it's happening everywhere. So it goes back
to these interest rates and they can't refinance out of
this high interest debt.
Speaker 1 (18:15):
And that's the key. I'm glad you brought that up,
as we've been saying.
Speaker 2 (18:18):
You know, we warned two years ago, right twenty twenty five,
twenty twenty six is supposed to be, or it was
supposed to be the year we started to see very
large commercial leve defaults because interest rates just are not
coming down. You hit it right on the head. All right,
let me continue very quickly. But after an investigation, the
lender doesn't say which lender. The lender found that many
of the notes and underlying properties were transferred to other
(18:39):
entities and those properties have already been foreclosed on or
were about to be according to the lawsuit.
Speaker 4 (18:45):
That means you don't have a first debt position. Yeah,
you're so.
Speaker 1 (18:49):
Here's my question.
Speaker 2 (18:51):
How does a bank that has first lean priority, first priority,
perfected security interests, how do they not know that, you know,
abc property that they had this on has been transferred
somewhere else.
Speaker 5 (19:03):
Well, they may or may not know that it's transferred,
but it's uh and Dwight and I've talked about this before.
Speaker 4 (19:08):
You know, I have a mortgage.
Speaker 5 (19:09):
Technically there's a due on sale clause. If I transferred
to to it, I have to pay. But as long
as I keep making the payments, nobody asks any questions.
And so that's the same thing that goes on. But
that's where and again I'm just theorizing here they transfer
to a different entity.
Speaker 4 (19:22):
They go into these private loan markets.
Speaker 5 (19:25):
Those guys have a whole different set of rules they
may loan on that they may do all kinds of
stuff and it muddies up the water. But again it
goes back to my point of there's such high interest
rates they cannot service the debt, so they have to
go to the private markets to get more capital just
to service the debt on the original stuff plus the
new stuff in it.
Speaker 4 (19:46):
It's a it's a hamster wheel. It's going to run
out of grease soon.
Speaker 1 (19:48):
Almost the Ponzi scheme in a sense, not saying this
deal is, but you describe it, yeah.
Speaker 6 (19:53):
Corey, is it is it similar to like a wrapper
around type of financing in the commercial world, you know,
I mean if you of property, like you said in
the in the in the in the single family world,
I could sell my house to John, he takes as
long as I'm making the payment. I mean, yes, it's
doing pale, But I mean, is that what they're kind
of doing. They're kind of just shifting the burden.
Speaker 3 (20:15):
If you're with I don't know, not if you're making
your payment, you're.
Speaker 1 (20:18):
Not all come on, they notified when there's a total change.
Speaker 5 (20:21):
No, well, on big commercial loans potentially, and it's in
your covenants that you can't.
Speaker 1 (20:28):
Do that, but on the sale.
Speaker 2 (20:31):
But they have notifies me if I have a if
my my uh uh ranch insurance, right, I've got all
these different.
Speaker 4 (20:40):
But that's different. Insurance insurance is different different.
Speaker 2 (20:42):
Well okay, but that to me, it's like, wait a minute,
you're telling me that these massive financial institutions don't have
some type of an alert system and property cells.
Speaker 1 (20:52):
And they're not.
Speaker 3 (20:54):
Holy it's not even it's it's more of a transfer
and it's a wrapper.
Speaker 4 (20:59):
We dealt what this is. It's it's not a wrap
around mortgage.
Speaker 5 (21:03):
So when you transfer the title, the bank says, well,
we don't care who owns it because we have a
first lean, like you can give it to a clue
that a credit flake. No, it doesn't matter though they
have a first lean so there their leverages. They can
foreclose on the property. But in what you just said,
and I'll have to look at it more, if they
transferred it and then that other lender already foreclosed, then
(21:25):
something you now you have titles.
Speaker 4 (21:28):
There's there's massive lawsuits happening.
Speaker 5 (21:30):
I'm sure, yes, but yes they you know, to a
normal bank, if they have a first lean position, you
can transfer it to a thousand different people.
Speaker 4 (21:39):
They still have the first right of priority. They don't
care who owns it.
Speaker 2 (21:43):
Wow, we wonder we get in trouble, right, some of
the things that are most common said, You're like, I'm
shocked what you guys just said. Great, Well, I want
to continue the story. Then we'll get to our topic,
because this is again very important. Let's turn it over
to Jack Saban. He's got these traffic weather Welcome back
(22:04):
to the John Sanchez Show. On his talk seven to
eighty k waits with Corey Edge vidrility to wipe Mallard
of Highlands Mortgage once again. We lost three to one
on the Dow, down one o eight on the nasdak K,
and a forty two point decline on the S and
P five hundred. Many of this was many of those
losses driven by the story we're sharing with you where
Zion's back corporate Western Alliance indicating well Zion said we're
going to take a fifty million million dollars ride off
(22:24):
because of a bad loan.
Speaker 1 (22:26):
Now to the rest of this Bloomberg story. Then we'll
get to our topic. How AI is reshaping real estate.
Speaker 2 (22:31):
So here's what Western Alliance happened. Okay, so Western Alliance
also lent money to the same investor group for them
to originate or buy mortgage loans. According to the bank's
lawsuit filed in August, the outstanding loan balance with Alliance
was ninety eight point six millions. So yeah, ninety eight
point six there sixty for zions.
Speaker 1 (22:53):
Okay.
Speaker 2 (22:53):
Western Alliance found that the collateral was supposed to be
backed by a first priority lean but that wasn't the case.
It led to the borrower created fake title policies by
O meeting the senior lanes. All Right, boys, how the
heck does that happen?
Speaker 3 (23:09):
I don't know.
Speaker 5 (23:10):
Fraud, fraud, fraud, I mean there. I would assume, again,
we don't have all the details. I would assume there's
other people involved, maybe even at the title company.
Speaker 4 (23:21):
I was thinking, like, as bad as it sounds.
Speaker 1 (23:25):
Here's a big lapse. Listen to this, guys.
Speaker 2 (23:27):
At the same time, the borrower drained funds from accounts
that acted as additional collateral. According to the lawsuit. As
of August eighteenth, the borrower doesn't say which, gentlemen. The
borrower held a little over one thousand dollars in their
bank account at Western Alliance, while the required monthly average
was two million.
Speaker 1 (23:47):
Dollars according to the lawsuit.
Speaker 2 (23:49):
So there's another bank failure, right, guys, how do you
not have an alert to whomever's account? Yeah, you're supposed
to have two million average ballots and you have a
thousand dollars. Western Alliance also has exposure to first brands,
but said it does not expect to issue a change
to its twenty five outlook. There's been a number of
(24:10):
one off credit events that a number of banks are
previewed going into the quarter, said Terry and McAvoy of
an Analysis Stevens Incorporated. He said an interview says they've
not gone unnoticed by bank investors.
Speaker 1 (24:23):
So keep in mind, folks, to wrap this up, then
we'll move on.
Speaker 2 (24:27):
Wall Street pays a lot of attention to the financial sector, right,
It's like the technology side. We look at it as
a barometer, right. It makes a lot of sense. If
banks are healthy, that means they're lending people are depositing money.
Speaker 1 (24:37):
On and on and on.
Speaker 2 (24:38):
If the sector starts to falter, that gets everybody's hair
on the back of their neck raising up, going, uh oh,
is there problems in the economy, you know, large loan
defaults and so on and so forth. So again, I
think this was pretty much overblown, right, very typical for something.
But you know, again, Zion's lost about thirteen percent today,
(25:00):
twelve point ninety six down about seven bucks to forty
seven oh three.
Speaker 1 (25:03):
That includes a little after hours action also.
Speaker 6 (25:05):
But John, what's amazing about this whole thing is the
banks are still licking their wounds from eight on nine.
I mean, Wells Fargo still really is an act in
the mortgage. I mean they're threatening how to come back into.
Speaker 1 (25:15):
The mortgage world.
Speaker 3 (25:16):
Yeah, but you're right, these things just yeah amazing.
Speaker 1 (25:20):
I know, like we were joking off the air.
Speaker 2 (25:24):
Investors or not investors, but banks Walstreet said, they just
never learned.
Speaker 1 (25:28):
There's just they look at it. There's too much money
to be made.
Speaker 2 (25:31):
You know.
Speaker 1 (25:32):
Again, one goes bad at one hundred, not bad.
Speaker 4 (25:34):
It's a cost of doing business.
Speaker 2 (25:36):
It has to doing business, you got, It's what they
pay all those big lawyers for. All Right, guys, let's
go back to our story that we started, our topic
that we started last tuesday, right, how AI is affecting
real estate investors from buyers, sellers and everything in between.
So to recap, we said, AI is powering property searches.
Corey went on to explain again that's been around for
a few years now, like Zillow and red fin et cetera,
(25:58):
how that uses AI to protict value of your property.
Second point we mentioned was the smart pricing and predictive analytics. Again,
Corey was talking about how it can go in and
analyze market trends, neighborhood growth, comp sales to help, you know,
people like Corey, you know, help determine price values, et cetera.
Are you using AI much, Corey? Are you going off
(26:19):
your years of experience when you're, you know, pricing a
house to lose?
Speaker 1 (26:23):
Is that a joke? You surprised me with this technology?
Speaker 4 (26:28):
Now?
Speaker 5 (26:28):
Yeah, for sure, for sure it's it's a artificial non intelligence.
Speaker 4 (26:39):
But I do like I so I still run comps away.
Speaker 5 (26:42):
I've always done it, but I do check them against
the online comps just to make sure. And again because
I know my clients are looking at that and looking
at it as gospel, so I want to make sure
we're somewhat close enough. We're not.
Speaker 4 (26:55):
Hopefully I can explain why and go from there.
Speaker 1 (26:59):
Let's go quickly.
Speaker 4 (27:00):
Thanks.
Speaker 1 (27:00):
Point number three Virtual tours and AI staging. This one
is fascinating. This one.
Speaker 5 (27:05):
You know, we've talked about this a little bit, so
the virtual tours is pretty easy now, and there's a
distinction now on our listings where we can load virtual tours.
You can do stuff we get every once in a
while on in a listing, I'll get a call from
another realtor that sets up a showing, but they set
up a virtual showing, so they've got their client on
the other end of their phone record or whatever they're
(27:25):
walking through with, and they'll go through like a normal showing.
The virtual staging is pretty cool. If you haven't seen
a house that does it yet, or donate yourself. Usually
always vacant, well not always. Most of the time they're
vacant houses, but it doesn't have to be. But you
take pictures with any good camera, you can upload them
to these sites and then usually I let my client
(27:46):
do it if they want to. They can choose what
style they want it staged in, and there's hundreds of
different styles and it takes them. Everybody's different. It might
take it used to take one or two days. Maybe
it's as slow now to get the images back to
but you look at them and it is. It's pretty
amazing what it looks like. What we have to do
(28:09):
on our side, though, is we have to put virtually
staged on the pictures because otherwise the buyer shows up
and goes, hey, wait a minute here, this isn't a course,
this is a Volvo. Yeah, but I did. I'll tell
you a real quick story. I had a client two
years ago. The house wasn't selling, We did open houses, nothing,
it was vacant. He goes, just try the virtual staging.
(28:30):
And I don't know if that's what did it or not,
but we were in escrow a couple of days later,
so who knows.
Speaker 4 (28:36):
But it is a cool feature.
Speaker 6 (28:38):
It is.
Speaker 2 (28:38):
I love that squeeze this last one before we go
to break that the mortgage preapproval literally in minutes.
Speaker 3 (28:44):
Yeah, we're already there, you know.
Speaker 6 (28:46):
I mean you and I had an off, you know,
off air conversation about the dying breed of a loan officer.
But yeah, I mean, it's probably not too far away
with all the technology to just with your associal Stree number,
to bring in your bank accounts, your employment things like that.
Speaker 2 (29:00):
So it's season number five to white the Friday Detection
Risk Analysis. Really, either of you could talk on this,
but how AI is spotting the red flags and documents
loan documents and I'm sure you know supporting documents. People
are giving you right too for you to help qualify
them for a loan.
Speaker 6 (29:16):
Yeah, it's already on the backside, you know, Fanny and
Freddy and f HR already it's integrity.
Speaker 1 (29:21):
You know, it's.
Speaker 6 (29:24):
Just that they're wanting to make sure that you are
looking at these files. But yeah, it's scrubbing them on
the backside, making sure you. It's quite amazing. It can
detect us not your appraisal. I mean, you know, for
that property. It's I mean, it's yeah, it's fascinating.
Speaker 2 (29:39):
Yeah, all right, we come back do it's going to
wrap up point number six, which is the customized loan
options due to AI, and then Corey will just give
us a summary of where this is going and AI
and real estate.
Speaker 1 (29:49):
Let's wrap it up.
Speaker 2 (29:50):
Speaking of which, with the wonderful Kristen Snow. You don't
sound too busy today. Are you praying for a snowstorm
or something or what's going on?
Speaker 6 (30:00):
No?
Speaker 1 (30:00):
Okay, okay, okay, don't jinq.
Speaker 5 (30:04):
I know that.
Speaker 2 (30:09):
Welcome back to the John Sanchez Show on News Talk
seven to eighty k Oh, it's mister a larger phone number, sir.
Speaker 3 (30:13):
Yes, sir seven seven five two four zero two zero
two two thank.
Speaker 4 (30:17):
You, mister edge six seven three six sevens thank you, sir.
Speaker 2 (30:22):
All Right, we're gonna wrap up our topic how AI
is reshaping real estate, so do I. Let's go to
at number six, the customize loan options algorithms match them
borrowers or loan programs. I mean, like you said before,
that's how Rocket and all these came together. But there's
something deeper that's going on that I want you to share.
This thing called the day one Certainty Certainty program.
Speaker 3 (30:46):
Yeah, well so the customer loan option, it's already there.
Speaker 6 (30:49):
I'm you could go into AI right now and say
this is your parameters, I got this credit score, this that.
Then it'll give you recommendations of letters that participate in
that field. So your cookie cutter, Fanny Freddy fa VA,
those type of things. They run off the desktop Underwriting LP.
These are the automated underwriting systems.
Speaker 1 (31:07):
John.
Speaker 6 (31:07):
We now have banks employers all that participate in this
portal that actually gets instant instantaneous verification of employment. Based
upon their participation in this portal. You get you get
your bank records, we get everything, we get your credit,
your bank. If if everything comes together, I'll have your
(31:28):
your file verified in I don't know an hour.
Speaker 5 (31:32):
Wow.
Speaker 6 (31:33):
So yeah, and that's that's the not the that's the
that's the vanilla version, but the customize. Yeah, but there's
all sorts of things now, John, bank statement loans, iten loans,
I mean you name it, uh ten ninety nine loans.
I mean, there's every type of loan out there now,
you which scares me because we've seen this before.
Speaker 1 (31:53):
Yeah. Well, let's let's go back to your saying something.
Speaker 2 (31:55):
And maybe I misunderstood that a borrow work could go
directly to Fanny or Fred Yeah not yeah, yeah, okay,
but that's what's coming.
Speaker 3 (32:02):
But I'm just yeah, we were talking off air, I
mean why not why? I mean, I don't know why
they're not. And you'll need an underwriter slash processor or
something to do all the final touches.
Speaker 1 (32:15):
I will or you won't need that person.
Speaker 6 (32:17):
You will, well, you'll eventually need an underwriter to sign off. Yes,
but can you see the employment base. I mean, I
got to go be an underwriter.
Speaker 1 (32:25):
Why are you so certain you need a underwritor I
challenge you.
Speaker 6 (32:28):
Well, because they have a certain designation on these fha
you might be right.
Speaker 3 (32:32):
I think you would need them for a while, but
eventually they might go away too.
Speaker 2 (32:36):
Right, So you could see the whole loan process literally
boiled down to a couple hours.
Speaker 1 (32:41):
Yeah, yeah, how'd you like that? Corey? You left that?
I mean, wrap us up? Yeah, what's the next.
Speaker 5 (32:50):
It's fascinating if you're going to prove somebody in a
half hour, why is are we still taking forty five
days to close? But that's a different show, Like it's
going to change my industry with contracts and showings and
stuff like we talked about. But that what you guys
are talking about right now, to me is that's a massive,
massive game changer. And like Dwight was mentioning on air
(33:10):
and offer a lot of it's already here. It's it's
kind of already happening. So very interesting.
Speaker 2 (33:18):
We got sixty seconds, give me a thirty second answer
that I'm going to ask Corey, where do you see
AI taking your linding industry in the next year to
two years?
Speaker 1 (33:25):
Oh?
Speaker 6 (33:25):
I think it just could be consumer direct. It'll be
the consumer will be able to just go right on
to what we were talking about. It'll be able to
tap into. It's just about everything you need and you'll
submit it, they'll verify it, they'll scan it. It's amazing
what AI can read and on your documents already, they're
doing it already.
Speaker 1 (33:42):
So yeah, Corey thirty seconds, where's your industry going there?
Speaker 5 (33:46):
I think that'll be a big game changer for us.
On the loan side, you're still going to need people,
but maybe the title side of it will change a lot.
We'll do another show on tokenization and how you can start.
Not now, but eventually, I think these titles will go
to the tokenization beyond the blockchain. Very simple transfer so
Dwight can approve them in a half hour. We can
transfer the property in ten minutes. This whole thing takes
(34:07):
you know, less than us move in in the day.
Speaker 6 (34:09):
There you go.
Speaker 2 (34:10):
Yeah, fascinating boys, excellent, excellent job for these last two days.
Sure appreciate you. We'll do to get more on the
John Sanchez Show. God bless, have a great afternoon.
Speaker 1 (34:18):
Dwight Millard n MLSID Number two four one two five
nine a licensed mortgage loan officer with Highlands Residential Mortgage
Limited and Equal Housing Lender n MLSID number one three
four eight seven one. The information shared on this live
broadcast is for general information purposes only and does not
constitute financial or mortgage advice.
Speaker 2 (34:36):
Listeners should consult directly with a licensed mortgage professional for
guidance tailored to their specific situation.
Speaker 1 (34:42):
All loans are subject to credit approval and program guidelines.
Not all applicants will qualify. Loan terms and availability may
vary by state and are subject to change without notice.
Speaker 2 (34:52):
Highland's Residential Mortgage Limited is licensed in multiple states. For
a full list of state licenses and disclosures, please visit
http yes slash slash www dot Highlandsmortgage dot com backslash
licenses backslash. The views expressed during this program are their
own and do not necessarily reflect those of Highland's Residential
Mortgage Limited.
Good Thursday afternoon to you.
Speaker 2 (00:01):
Welcome to the John Sanchez Show on News Talk seven
to eighty k which it's a pleasure to be with
you one more day in this crazy work week, a
great bleasure to be with my co host around the horns.
We shall go. Let's start with Dewhite Millard Highlands Mortgage.
How are you, my friend?
Speaker 3 (00:13):
I'm doing fantastic, John, How are you doing today?
Speaker 2 (00:16):
You should be Your rates tumbled today, my stock market
tumble and your rates tumbled.
Speaker 1 (00:21):
Dog gun, it's not supposed to be there far.
Speaker 3 (00:23):
It's been too locoming, so we're hoping for more.
Speaker 2 (00:27):
I hear your brother, I hear your Corey individually. Hey
doing big, Cie.
Speaker 4 (00:31):
I'm doing good, doing good.
Speaker 1 (00:32):
Glad to hear it, Glad to hear it. Alrighty, folks,
let me tell you what we have lined up for you.
Speaker 2 (00:37):
We're gonna get right into it because we had a
lot of things to talk about if you joined us
on Tuesday, we began this topic, which is the AI
world in regards to real estate, right from home searches
to mortgage approvals. Artificial intelligence is absolutely reshaping how Americans
buy and sell real estate. Today, we are going to
continue our discussion that we started on Tuesday, because we
(00:59):
only got to a couple of our seven points that
we wanted to cover on how AI is changing the
game for both buyers sellers, and of course the whites
world of lending and what it means for you in
your real estate transaction. So so I've been looking forward
to this. Guys, can't can't wait. We'll recap the I
think three points that we got through on Tuesday and
(01:21):
then get down to our final four points. But it's interesting.
But first, guys, let's again so we don't run out
of time. Now, I'm gonna get right to the stock
market side of things today. You know, we've been facing
a situation. You've heard us say this many times on
this program. Corey, just refresh my memory that we just
(01:43):
said it the other day. And then you even had
Jamie Dimond, Remember I joked on and I think it
was Tuesday that Jamie Dimond, the most you know, probably
well respected CEO of any company in the world, said
the same thing we've been saying, the cockroachs theory. Now
what do I mean by this, Well, we had an
okay session going today, then all of a sudden, coming
(02:04):
across the newswires is news from the banking sector. Now,
what happened two companies of local as well as national presence,
but very local, Zion's Bank Corp. And Western Alliance. Let
me tell you what the stocks did and how it
impacted the market today. Okay, Zion's Bank Corp. Down thirteen
(02:25):
point one four percent, seven dollars ten cent loss to
forty six ninety three a share. Western Alliance wal of course,
the symbol ten point eight one percent lost, down eight
dollars and fifty two cents to seventy thirty two. The
two companies disclosed that they were victims of fraud involving
loans that were tied to funds that invest in distressed
commercial real estate. This is according to Bloomberg. Zions disclosed
(02:48):
fifty million dollars charge off for one of the loans,
which would be reflected in the company's third quarter earning
statement and ETF that we followed that tracks all of
the banking names out there are most of the banking
name fell six point three. In response to that, mister Edge,
you had a few points that you wanted to mention
about this story.
Speaker 5 (03:07):
Well, you know, we we talked about it a couple
of weeks ago. So you had these two big bankruptcies
in the car world, the auto parts.
Speaker 4 (03:14):
And I think what car dealership if I remember right.
Speaker 1 (03:17):
Lenders, yeah, lenders, yeah, yeah, prime lenders.
Speaker 4 (03:21):
Yeah.
Speaker 5 (03:22):
That's an interesting story in myself because their biggest client
or illegal aliens. So I mean you kind of figured
that one might go bust on it. Anyway, So the
big auto brands was it's a huge bankruptcy. And so
when the creditors got in there a couple of weeks
ago to start figuring all this stuff out, turns out
there's billions and billions of dollars off balance sheet private debt,
(03:42):
and they're they're getting debt on their accounts receivable, they're
getting debt on everything.
Speaker 4 (03:47):
But they're doing it multiple times. You alluded to it
on Tuesday.
Speaker 5 (03:50):
If I have an account receivable and I'm gonna lever
it up and get you know, a billion dollars or
five hundred whatever, I'm gonna get on it.
Speaker 4 (03:57):
Well, they were doing that to multiple lenders.
Speaker 5 (04:00):
Multiple lenders were landing on it because it's outside the norm,
it's the private credit markets. And to me, I just
listened to it in the background and look at it
a little bit. But the private credit markets they've been
talking about a lot and how big they are. Nobody
really knows how big they are. Where the tentacles go.
But the to me looking at it from a I
don't know a global aspect of it, you need the
(04:22):
private credit markets because the traditional credit markets are so
tight and the interest is high.
Speaker 4 (04:27):
Yes, so it's it's and.
Speaker 2 (04:29):
It's a lucrative niche I mean, let's be honest. We
anything that's not lucrative. It's a very lucrative.
Speaker 5 (04:33):
It's lucrative because you can charge crazy rates. But the
fact that you need it points to the fact that
there's something not really great going on in the overall economy,
in my opinion, because otherwise these people wouldn't go there
and pay those crazy rates.
Speaker 1 (04:47):
So well, let's be careful on that point.
Speaker 2 (04:50):
Let's go back to tricore the I'm just going to
kind of call them a hard money you know, when
I was in the autolnding business, we had other names
that I can't say on the air, but uh, it
was called kind of a hard money lender. And you
hit it right on the right on the head, Cort,
And I'm sorry to interrupt you on this.
Speaker 1 (05:05):
Uh uh.
Speaker 2 (05:06):
You know, they lent their their prime market were illegal aliens, right,
they didn't care, and they would charge interest rates commensurate
with the risk that they felt they were taking. So
my point of bringing this up and rudely interrupting you
is they that was their target market. And that's that's
what we have to watch right when you start talking
about private credit. And let's kind of take everybody behind
(05:28):
the scenes a little bit, because you know, I'm going
to go back to my GMAC days, right, my my
first real job I ever had out of high school,
and I'm out of college and so on and so forth,
and you know GMAC at that point, this was late eighties,
early late eighties when I was there for five years.
You know, they were the largest borrower of the Federal Reserve, right,
(05:48):
so they would go right to the Fed and borrow
the money and then lend it out, you know, and
auto loans, right, But did they Because I was a
credit manager, I was responsible for my final position of
approving loans.
Speaker 4 (05:59):
Right.
Speaker 2 (06:00):
Dwight talks all the time about automated and underwriting. We
just started to get into that at that point. A
lot of it was still done manually, So yeah, you
would look at it. It's you know, a dealership would
would facts over in those days, the facts over the
auto deal and you'd look at it. Of course you'd
pull the person's credit, but like Dwight is so good
at doing, you know, you have to look beyond just
what the credit score is. Is this somebody that's responsible
(06:21):
or you know, do you want to lend on the
money or not? The answers no, great, you pass on
the deal, and they would go to a company like
a TRICORPS not so much again when that focused on
the legal aliens, but but more so one that kind
of handled the again, the subprime market. So these guys
look at it. But to your point, Corey, they're back.
Speaker 1 (06:38):
You know what do they do.
Speaker 2 (06:39):
They get their money from Wall Street. Wall Street goes, hey,
you know, Dwight, you're a subprime lender to you know,
in the auto industry. So guess what we're going to
You're you're wholesal a line of credit. It's going to
be at you know whatever, you meaning your cost of
money nine to ten percent. Dwight goes, hey, no problem,
because I'm going to go charge you know, Joe Blow
who's a subprime borrower. I'm going to charge them twenty
percent and I'm going to make a ten point spread,
(07:00):
and hey, everybody's happy.
Speaker 1 (07:01):
He got a car.
Speaker 2 (07:02):
We're making a bunch of money until Corey, like you
just said, something like this happens.
Speaker 5 (07:06):
So continued, well, and it rolls up and again back
to the auto part dealer. You had a big bank, Jeffreyes,
that had a bunch of money invested in there and there.
The way they do it is they have a separate
kind of entity, if you will, on their balance sheet
that shows this investment, but they're getting even that money
from other banks. So, as we've talked about multiple times,
you don't know where the tentacles go because you're not
(07:28):
sure where all the money's starting them. But this is
how it starts unraveling itself, because I think even JP
Morgan and some of them called for redemptions from Jeffrey saying, hey,
give us our money back.
Speaker 4 (07:38):
Well, we know you still have some before the sin
gets out of hands.
Speaker 2 (07:42):
So exactly, I would like to I'd like to take
just a moment, guys, and I want to read to
you because Bloomberg kind of broke this story to if
I remember correctly, so I want to give them the
full credit. Let me read you this very quick story
from Bloomberg so everybody can understand, and then the reason
we're doing this again. This brought the market down. We
lost three zero one on the Dow, one hundred and
seven on the Nasdaq, and a forty two point loss
(08:02):
on the S and P five hundred. Not significant numbers
by any means, but as we've been warning for weeks,
actually probably months, the cock Roads theory, this is what
we have to be cognizant about as investors, portfolio managers
like myself, and that is where there's one problem lurking.
There could be meaning more exactly to Corey's point, which is,
we don't know where the tentacles go, right. We don't
(08:22):
know because this is the way Wall Street works, folks.
You know, let's say let's let's say Corey, myself and Dwight.
Let's say we're three major Wall Street firms. Well, it's
just like the world of insurance, right when you hear
the you know, the all states, the state farms, the
farmers of the world crying the blues and there's a
major disaster, like oh my god, we're writing checks for
billions of dollars and so on. Neah, okay, hold on
(08:42):
a second. You reinsured, mean you have other insurance companies
that are also pain you know. And that's the way
Wall Street works. It's like one company lends to another,
who lends to another, who lends to another. You've got
all these hands, or to Corey's point, tentacles that are
involved in the deals. And that's why you have to
be careful when and you know, I want to I
want to give kudos to Cory. The last couple of
(09:03):
days we've been talking about, you know, the tricrep situation.
You know that that again that that some prime lender,
and then the other situation with the auto parts company
their names escaping it at first brands.
Speaker 1 (09:15):
That's what it is. Because again these guys are all
intertwined together.
Speaker 2 (09:20):
So let me let me see if I can get
through the story real quick before we go to break,
and then we'll continue on because again this feeds right
into the into the market action today. So this is
according to to Bloomberg, So listen closely. Shares of two
regional banks tumbled Thursday after the company said they were
the victims of fraud on loans to funds that invest
in distress commercial real estate, fueling concerns that more cracks
(09:41):
are emerging in the credit markets.
Speaker 1 (09:43):
Zions Bank Corps.
Speaker 2 (09:44):
Sank twelve percent after it disclosed a fifty million dollar
charge off for a loan underwritten by its wholly owned subsidiary,
California Bank and Trust in San Diego. Okay, keep this
in mind, fifty million. I'm going to look at the
balance sheet of Zions. I don't think that's a significant
can number, but again, this is a subsidiary that went
the money. Western Alliance Bank Corp, also a stock of
(10:07):
local or company of local and national presence, tumbled almost
eleven percent after they said it may loans to the
same bars. Okay, let me Actually, I'm going to stop
there because I can't get through the rest of this.
So now you have Zions and you have Western Alliance
Bank Corp. All of a sudden realizing we just lent
money to the same people. Now, what could be a
problem with that. You'll find out when we come back.
(10:28):
Let's turn it over to Kristin Snow right now Traffic Center. Hello, Kristen,
Welcome back to the John Sanchez Show on the talk
seven to eighty kait two with Corey Edge of Agriility
to White Mollard of Highlands Mortgage. Once again, we lost
three on one on the down and now as that
gave up one oh eight in the SMB down forty two,
it's got the commodity side and the bonds Dwight, and
then we're going to come back to one of the
(10:49):
driving factors there. There was a number of things that
happened today, but this kind of was the nail and
the coffin that drove us down. The story that we're
just starting to share with you in regards to Zion's
Bank Corp. And Western Alliance Oil pull back pretty sharply today.
Dollar twenty five lost fifty seven oh three a barrel. Man,
it's gonna feel good at the pump if that holds
gold continuing, It's run one hundred dollars and seventy cent
(11:10):
game four thousand and three oh five fifty and missed
them all.
Speaker 1 (11:13):
Lart.
Speaker 2 (11:13):
As I said at the beginning of the show, you
got to be smiling, brothers. Seven basis point loss on
the tenure. You broke four percent three point nine eight seven.
Speaker 1 (11:22):
Man, how do you find that brother? How do you
do that?
Speaker 3 (11:26):
You can't. Well, you take it while you get it right.
Speaker 6 (11:28):
So, I mean the good news is, John, is as
of Thursday, the thirty year fixed according Mortgage News Daily,
is six point two three.
Speaker 3 (11:37):
So that's a ten basis points improvement just from Tuesday.
Speaker 6 (11:40):
So from yesterday and today, your fifteen year five point eight,
your thirty year FHA five point nine eight, so you
broke that six percent barrier, and your your VA is
at five point ninety nine.
Speaker 3 (11:52):
So I mean these are just but you know, John,
I got to.
Speaker 6 (11:55):
Tell you since Tuesday and my travels, it's still longer
the rate anymore, believe it or not. I mean, people
are worried about their jobs, they're worried about their they're
worried about other economic issues, you know, cost of living
things like that. So I mean, yes, the rate's going
to help. I'm not you know, I denied that a
long time ago, and you guys corrected me.
Speaker 1 (12:15):
But uh, you know, but it's a combination of things, right.
Speaker 3 (12:18):
It's a combination. So but what I'm saying is though
the rate, the importance on the rate has kind.
Speaker 6 (12:24):
Of you know, done this and other items of concern
have taken over so I will take it. But it'll
be interesting to see. I wouldn't be overly surprised if
you even dropped inside of six and we just didn't
see the app I mean, you're gonna see a little
bit of application. Are a little bit of a increase
in applications. But I don't know when to be off
the charts. Yea too could because of other factors lurking
(12:47):
out factors.
Speaker 2 (12:48):
Right, well, as long as this government stays shut down.
It seems like the bond traders like bringing these rates
down because again that tenure breaking three or four percent. Yeah,
I haven't seen that in a long time. All right, Well,
that's great news, DW. I thank you for bring us
out to day on the mortgage side. Let's get back
to our story from Bloomberg once again. If you just
joined us mid session today, some breaking news came out
(13:10):
again two stocks of local as well as national presence.
And know many of you probably have banking relationships with
these companies, don't fret. I you know the boys and
I were talking about during the break, this really is
just a somewhat of a drop in the bucket. Is
if you look at the overall value of their companies.
But we're talking about Zions Bank Corp. Against stock sinking
nearly twelve percent. They disclose a fifty million dollar charge
(13:32):
off for a loan that was underwritten by a wholly
owned subsidiary of the company that's called California Bank and
Trust that's located in San Diego, Western Alliance Bank Corp.
Tumbling almost eleven percent after they said they made loans
to the same borrowers. Now, just to put this in perspective, folks,
to stop real quick, so Zion's Bank Corp.
Speaker 1 (13:51):
Again.
Speaker 2 (13:51):
They just they're going to charge off fifty million dollars
in their next quarterly report. The market cap of the
company six point ninety two billion dollars fifty million. Okay,
it's a slap on the hand from Wall Street, you know,
as far as earnings per share. But in the big
scheme of things, you know, by no means please don't
(14:12):
make a run on the bank or anything else. Our
biggest concern is more of these situations can begin to
unrise or unravel, as we keep saying the cock roots theory,
where there's one, there's more, and this could be the
beginning of it. We're again not alone, Jamie Diamond the
other day said the same thing. Okay, so let's get
back to the story now once again. I'm gonna read
(14:33):
this over one more time. The disclosure. The disclosure adds
to the other recent loan blow ups as we were
touching on earlier, including CYB subprime auto lender Tricore Holdings,
which filed for bankruptcy last month and triggered a near
total wipeout on some depth. That was followed by the
bankruptcy of autopart supplier First Brand. If those of you
(14:53):
that don't know First Brand, you know the products fram
auto Filters is one of them in a lot of
name brands that many of you probably purchased and parts
for your car. JP Morgan and Fifth Third Bank Corp.
Disclosed hundreds of millions of dollars in combined losses tied
to Tricorp or Tricolor excuse me, that's the auto lender,
while Jeffrey's Financial Group disclosed exposure to First Brands. Now,
(15:16):
while those hits can be easily absorbed by the biggest
US banks, that totals are more worrisome for regional lenders. Quote,
if JP Morgan has a loan problem with Tricolor, it's puny,
according to Mike Nao, very well respected Molster analysts Elvert
Wells Fargo said in an interview. But if smaller banks
have problems with these loans, it takes more of a hit,
Zion said in a lawsuit. The California Bank and Trust
(15:39):
is owed the money from two investments tied to Andrew
Stupen and Gerald Marsall, among other parties. California Bank and
Trust provided two revolving credit facilities to the borrowers in
twenty sixteen and twenty seventeen, totally more than sixty million
dollars to finance the purchase of distress commercial real estate
mortgage loans. According to the l lawsuit, the terms gave
(16:01):
the bank quote first priority perfected security interest in all collateral,
including each mortgage loan purchased by the investment funds, Corey
or Dwight, whatever you want to jump in, explain to
the audience first priority, perfected security interest in all collateral,
including each mortgage loan purchase.
Speaker 1 (16:19):
What does that mean English?
Speaker 5 (16:20):
I mean, if it's true, that means you're first in line,
So you're the first deed of trust, hoold or the
first lender on that property. So if you go through bankruptcy, foreclosure, whatever,
there's no other loans in front of you. Sometimes that
gets changed on just the irs can jump them, local
taxes can jump them. If you go into bankruptcy, you
get what's called dip dip financing, debtor and possession that
(16:42):
jumps in front. So there's some stuff that can jump
in front. But it's good if you have a first position.
Speaker 3 (16:48):
John, I got a question though.
Speaker 6 (16:49):
I mean, when you start saying that this was a
lender that delta in distressed properties, right right, I mean, okay,
so you already now know you've got I mean, now
you already know you got a problem. Generally when you
make terms to those type of things that usually higher
percentage rates, higher point.
Speaker 3 (17:10):
I mean, you just stick it to them even worse
than what they had. So I mean, sometimes you kind
of know the devil you're dancing.
Speaker 6 (17:18):
With, don't you.
Speaker 1 (17:18):
That's the point I'm trying to get across.
Speaker 5 (17:21):
But here's the thing to remember in these because I've
looked at these these guys, they were buying distressed assets.
They weren't technically distressed to themselves. That was their business,
was buying distressed stuff. So from the banks perpective look good.
But I think I mentioned to you guys we talked
on air. I was with a guy three months ago,
I think, big property owner down in the LA area,
(17:42):
multiple malls, ones of stuff, and he told me. We
had a very frank conversation. He goes, I've got maybe
two years eighteen months right around there. That is as
long as I can keep doing what I'm doing before
all my stuff goes back to the bank because I'm
not making any money my stuff, you know, I'm dipping
into other stuff to keep these things alive. And to me,
(18:02):
that's the cockroach, right Like that's if I had if
a little old me had a conversation with a huge
guy saying that it's happening everywhere. So it goes back
to these interest rates and they can't refinance out of
this high interest debt.
Speaker 1 (18:15):
And that's the key. I'm glad you brought that up,
as we've been saying.
Speaker 2 (18:18):
You know, we warned two years ago, right twenty twenty five,
twenty twenty six is supposed to be, or it was
supposed to be the year we started to see very
large commercial leve defaults because interest rates just are not
coming down. You hit it right on the head. All right,
let me continue very quickly. But after an investigation, the
lender doesn't say which lender. The lender found that many
of the notes and underlying properties were transferred to other
(18:39):
entities and those properties have already been foreclosed on or
were about to be according to the lawsuit.
Speaker 4 (18:45):
That means you don't have a first debt position. Yeah,
you're so.
Speaker 1 (18:49):
Here's my question.
Speaker 2 (18:51):
How does a bank that has first lean priority, first priority,
perfected security interests, how do they not know that, you know,
abc property that they had this on has been transferred
somewhere else.
Speaker 5 (19:03):
Well, they may or may not know that it's transferred,
but it's uh and Dwight and I've talked about this before.
Speaker 4 (19:08):
You know, I have a mortgage.
Speaker 5 (19:09):
Technically there's a due on sale clause. If I transferred
to to it, I have to pay. But as long
as I keep making the payments, nobody asks any questions.
And so that's the same thing that goes on. But
that's where and again I'm just theorizing here they transfer
to a different entity.
Speaker 4 (19:22):
They go into these private loan markets.
Speaker 5 (19:25):
Those guys have a whole different set of rules they
may loan on that they may do all kinds of
stuff and it muddies up the water. But again it
goes back to my point of there's such high interest
rates they cannot service the debt, so they have to
go to the private markets to get more capital just
to service the debt on the original stuff plus the
new stuff in it.
Speaker 4 (19:46):
It's a it's a hamster wheel. It's going to run
out of grease soon.
Speaker 1 (19:48):
Almost the Ponzi scheme in a sense, not saying this
deal is, but you describe it, yeah.
Speaker 6 (19:53):
Corey, is it is it similar to like a wrapper
around type of financing in the commercial world, you know,
I mean if you of property, like you said in
the in the in the in the single family world,
I could sell my house to John, he takes as
long as I'm making the payment. I mean, yes, it's
doing pale, But I mean, is that what they're kind
of doing. They're kind of just shifting the burden.
Speaker 3 (20:15):
If you're with I don't know, not if you're making
your payment, you're.
Speaker 1 (20:18):
Not all come on, they notified when there's a total change.
Speaker 5 (20:21):
No, well, on big commercial loans potentially, and it's in
your covenants that you can't.
Speaker 1 (20:28):
Do that, but on the sale.
Speaker 2 (20:31):
But they have notifies me if I have a if
my my uh uh ranch insurance, right, I've got all
these different.
Speaker 4 (20:40):
But that's different. Insurance insurance is different different.
Speaker 2 (20:42):
Well okay, but that to me, it's like, wait a minute,
you're telling me that these massive financial institutions don't have
some type of an alert system and property cells.
Speaker 1 (20:52):
And they're not.
Speaker 3 (20:54):
Holy it's not even it's it's more of a transfer
and it's a wrapper.
Speaker 4 (20:59):
We dealt what this is. It's it's not a wrap
around mortgage.
Speaker 5 (21:03):
So when you transfer the title, the bank says, well,
we don't care who owns it because we have a
first lean, like you can give it to a clue
that a credit flake. No, it doesn't matter though they
have a first lean so there their leverages. They can
foreclose on the property. But in what you just said,
and I'll have to look at it more, if they
transferred it and then that other lender already foreclosed, then
(21:25):
something you now you have titles.
Speaker 4 (21:28):
There's there's massive lawsuits happening.
Speaker 5 (21:30):
I'm sure, yes, but yes they you know, to a
normal bank, if they have a first lean position, you
can transfer it to a thousand different people.
Speaker 4 (21:39):
They still have the first right of priority. They don't
care who owns it.
Speaker 2 (21:43):
Wow, we wonder we get in trouble, right, some of
the things that are most common said, You're like, I'm
shocked what you guys just said. Great, Well, I want
to continue the story. Then we'll get to our topic,
because this is again very important. Let's turn it over
to Jack Saban. He's got these traffic weather Welcome back
(22:04):
to the John Sanchez Show. On his talk seven to
eighty k waits with Corey Edge vidrility to wipe Mallard
of Highlands Mortgage once again. We lost three to one
on the Dow, down one o eight on the nasdak K,
and a forty two point decline on the S and
P five hundred. Many of this was many of those
losses driven by the story we're sharing with you where
Zion's back corporate Western Alliance indicating well Zion said we're
going to take a fifty million million dollars ride off
(22:24):
because of a bad loan.
Speaker 1 (22:26):
Now to the rest of this Bloomberg story. Then we'll
get to our topic. How AI is reshaping real estate.
Speaker 2 (22:31):
So here's what Western Alliance happened. Okay, so Western Alliance
also lent money to the same investor group for them
to originate or buy mortgage loans. According to the bank's
lawsuit filed in August, the outstanding loan balance with Alliance
was ninety eight point six millions. So yeah, ninety eight
point six there sixty for zions.
Speaker 1 (22:53):
Okay.
Speaker 2 (22:53):
Western Alliance found that the collateral was supposed to be
backed by a first priority lean but that wasn't the case.
It led to the borrower created fake title policies by
O meeting the senior lanes. All Right, boys, how the
heck does that happen?
Speaker 3 (23:09):
I don't know.
Speaker 5 (23:10):
Fraud, fraud, fraud, I mean there. I would assume, again,
we don't have all the details. I would assume there's
other people involved, maybe even at the title company.
Speaker 4 (23:21):
I was thinking, like, as bad as it sounds.
Speaker 1 (23:25):
Here's a big lapse. Listen to this, guys.
Speaker 2 (23:27):
At the same time, the borrower drained funds from accounts
that acted as additional collateral. According to the lawsuit. As
of August eighteenth, the borrower doesn't say which, gentlemen. The
borrower held a little over one thousand dollars in their
bank account at Western Alliance, while the required monthly average
was two million.
Speaker 1 (23:47):
Dollars according to the lawsuit.
Speaker 2 (23:49):
So there's another bank failure, right, guys, how do you
not have an alert to whomever's account? Yeah, you're supposed
to have two million average ballots and you have a
thousand dollars. Western Alliance also has exposure to first brands,
but said it does not expect to issue a change
to its twenty five outlook. There's been a number of
(24:10):
one off credit events that a number of banks are
previewed going into the quarter, said Terry and McAvoy of
an Analysis Stevens Incorporated. He said an interview says they've
not gone unnoticed by bank investors.
Speaker 1 (24:23):
So keep in mind, folks, to wrap this up, then
we'll move on.
Speaker 2 (24:27):
Wall Street pays a lot of attention to the financial sector, right,
It's like the technology side. We look at it as
a barometer, right. It makes a lot of sense. If
banks are healthy, that means they're lending people are depositing money.
Speaker 1 (24:37):
On and on and on.
Speaker 2 (24:38):
If the sector starts to falter, that gets everybody's hair
on the back of their neck raising up, going, uh oh,
is there problems in the economy, you know, large loan
defaults and so on and so forth. So again, I
think this was pretty much overblown, right, very typical for something.
But you know, again, Zion's lost about thirteen percent today,
(25:00):
twelve point ninety six down about seven bucks to forty
seven oh three.
Speaker 1 (25:03):
That includes a little after hours action also.
Speaker 6 (25:05):
But John, what's amazing about this whole thing is the
banks are still licking their wounds from eight on nine.
I mean, Wells Fargo still really is an act in
the mortgage. I mean they're threatening how to come back into.
Speaker 1 (25:15):
The mortgage world.
Speaker 3 (25:16):
Yeah, but you're right, these things just yeah amazing.
Speaker 1 (25:20):
I know, like we were joking off the air.
Speaker 2 (25:24):
Investors or not investors, but banks Walstreet said, they just
never learned.
Speaker 1 (25:28):
There's just they look at it. There's too much money
to be made.
Speaker 2 (25:31):
You know.
Speaker 1 (25:32):
Again, one goes bad at one hundred, not bad.
Speaker 4 (25:34):
It's a cost of doing business.
Speaker 2 (25:36):
It has to doing business, you got, It's what they
pay all those big lawyers for. All Right, guys, let's
go back to our story that we started, our topic
that we started last tuesday, right, how AI is affecting
real estate investors from buyers, sellers and everything in between.
So to recap, we said, AI is powering property searches.
Corey went on to explain again that's been around for
a few years now, like Zillow and red fin et cetera,
(25:58):
how that uses AI to protict value of your property.
Second point we mentioned was the smart pricing and predictive analytics. Again,
Corey was talking about how it can go in and
analyze market trends, neighborhood growth, comp sales to help, you know,
people like Corey, you know, help determine price values, et cetera.
Are you using AI much, Corey? Are you going off
(26:19):
your years of experience when you're, you know, pricing a
house to lose?
Speaker 1 (26:23):
Is that a joke? You surprised me with this technology?
Speaker 4 (26:28):
Now?
Speaker 5 (26:28):
Yeah, for sure, for sure it's it's a artificial non intelligence.
Speaker 4 (26:39):
But I do like I so I still run comps away.
Speaker 5 (26:42):
I've always done it, but I do check them against
the online comps just to make sure. And again because
I know my clients are looking at that and looking
at it as gospel, so I want to make sure
we're somewhat close enough. We're not.
Speaker 4 (26:55):
Hopefully I can explain why and go from there.
Speaker 1 (26:59):
Let's go quickly.
Speaker 4 (27:00):
Thanks.
Speaker 1 (27:00):
Point number three Virtual tours and AI staging. This one
is fascinating. This one.
Speaker 5 (27:05):
You know, we've talked about this a little bit, so
the virtual tours is pretty easy now, and there's a
distinction now on our listings where we can load virtual tours.
You can do stuff we get every once in a
while on in a listing, I'll get a call from
another realtor that sets up a showing, but they set
up a virtual showing, so they've got their client on
the other end of their phone record or whatever they're
(27:25):
walking through with, and they'll go through like a normal showing.
The virtual staging is pretty cool. If you haven't seen
a house that does it yet, or donate yourself. Usually
always vacant, well not always. Most of the time they're
vacant houses, but it doesn't have to be. But you
take pictures with any good camera, you can upload them
to these sites and then usually I let my client
(27:46):
do it if they want to. They can choose what
style they want it staged in, and there's hundreds of
different styles and it takes them. Everybody's different. It might
take it used to take one or two days. Maybe
it's as slow now to get the images back to
but you look at them and it is. It's pretty
amazing what it looks like. What we have to do
(28:09):
on our side, though, is we have to put virtually
staged on the pictures because otherwise the buyer shows up
and goes, hey, wait a minute here, this isn't a course,
this is a Volvo. Yeah, but I did. I'll tell
you a real quick story. I had a client two
years ago. The house wasn't selling, We did open houses, nothing,
it was vacant. He goes, just try the virtual staging.
(28:30):
And I don't know if that's what did it or not,
but we were in escrow a couple of days later,
so who knows.
Speaker 4 (28:36):
But it is a cool feature.
Speaker 6 (28:38):
It is.
Speaker 2 (28:38):
I love that squeeze this last one before we go
to break that the mortgage preapproval literally in minutes.
Speaker 3 (28:44):
Yeah, we're already there, you know.
Speaker 6 (28:46):
I mean you and I had an off, you know,
off air conversation about the dying breed of a loan officer.
But yeah, I mean, it's probably not too far away
with all the technology to just with your associal Stree number,
to bring in your bank accounts, your employment things like that.
Speaker 2 (29:00):
So it's season number five to white the Friday Detection
Risk Analysis. Really, either of you could talk on this,
but how AI is spotting the red flags and documents
loan documents and I'm sure you know supporting documents. People
are giving you right too for you to help qualify
them for a loan.
Speaker 6 (29:16):
Yeah, it's already on the backside, you know, Fanny and
Freddy and f HR already it's integrity.
Speaker 1 (29:21):
You know, it's.
Speaker 6 (29:24):
Just that they're wanting to make sure that you are
looking at these files. But yeah, it's scrubbing them on
the backside, making sure you. It's quite amazing. It can
detect us not your appraisal. I mean, you know, for
that property. It's I mean, it's yeah, it's fascinating.
Speaker 2 (29:39):
Yeah, all right, we come back do it's going to
wrap up point number six, which is the customized loan
options due to AI, and then Corey will just give
us a summary of where this is going and AI
and real estate.
Speaker 1 (29:49):
Let's wrap it up.
Speaker 2 (29:50):
Speaking of which, with the wonderful Kristen Snow. You don't
sound too busy today. Are you praying for a snowstorm
or something or what's going on?
Speaker 6 (30:00):
No?
Speaker 1 (30:00):
Okay, okay, okay, don't jinq.
Speaker 5 (30:04):
I know that.
Speaker 2 (30:09):
Welcome back to the John Sanchez Show on News Talk
seven to eighty k Oh, it's mister a larger phone number, sir.
Speaker 3 (30:13):
Yes, sir seven seven five two four zero two zero
two two thank.
Speaker 4 (30:17):
You, mister edge six seven three six sevens thank you, sir.
Speaker 2 (30:22):
All Right, we're gonna wrap up our topic how AI
is reshaping real estate, so do I. Let's go to
at number six, the customize loan options algorithms match them
borrowers or loan programs. I mean, like you said before,
that's how Rocket and all these came together. But there's
something deeper that's going on that I want you to share.
This thing called the day one Certainty Certainty program.
Speaker 3 (30:46):
Yeah, well so the customer loan option, it's already there.
Speaker 6 (30:49):
I'm you could go into AI right now and say
this is your parameters, I got this credit score, this that.
Then it'll give you recommendations of letters that participate in
that field. So your cookie cutter, Fanny Freddy fa VA,
those type of things. They run off the desktop Underwriting LP.
These are the automated underwriting systems.
Speaker 1 (31:07):
John.
Speaker 6 (31:07):
We now have banks employers all that participate in this
portal that actually gets instant instantaneous verification of employment. Based
upon their participation in this portal. You get you get
your bank records, we get everything, we get your credit,
your bank. If if everything comes together, I'll have your
(31:28):
your file verified in I don't know an hour.
Speaker 5 (31:32):
Wow.
Speaker 6 (31:33):
So yeah, and that's that's the not the that's the
that's the vanilla version, but the customize. Yeah, but there's
all sorts of things now, John, bank statement loans, iten loans,
I mean you name it, uh ten ninety nine loans.
I mean, there's every type of loan out there now,
you which scares me because we've seen this before.
Speaker 1 (31:53):
Yeah. Well, let's let's go back to your saying something.
Speaker 2 (31:55):
And maybe I misunderstood that a borrow work could go
directly to Fanny or Fred Yeah not yeah, yeah, okay,
but that's what's coming.
Speaker 3 (32:02):
But I'm just yeah, we were talking off air, I
mean why not why? I mean, I don't know why
they're not. And you'll need an underwriter slash processor or
something to do all the final touches.
Speaker 1 (32:15):
I will or you won't need that person.
Speaker 6 (32:17):
You will, well, you'll eventually need an underwriter to sign off. Yes,
but can you see the employment base. I mean, I
got to go be an underwriter.
Speaker 1 (32:25):
Why are you so certain you need a underwritor I
challenge you.
Speaker 6 (32:28):
Well, because they have a certain designation on these fha
you might be right.
Speaker 3 (32:32):
I think you would need them for a while, but
eventually they might go away too.
Speaker 2 (32:36):
Right, So you could see the whole loan process literally
boiled down to a couple hours.
Speaker 1 (32:41):
Yeah, yeah, how'd you like that? Corey? You left that?
I mean, wrap us up? Yeah, what's the next.
Speaker 5 (32:50):
It's fascinating if you're going to prove somebody in a
half hour, why is are we still taking forty five
days to close? But that's a different show, Like it's
going to change my industry with contracts and showings and
stuff like we talked about. But that what you guys
are talking about right now, to me is that's a massive,
massive game changer. And like Dwight was mentioning on air
(33:10):
and offer a lot of it's already here. It's it's
kind of already happening. So very interesting.
Speaker 2 (33:18):
We got sixty seconds, give me a thirty second answer
that I'm going to ask Corey, where do you see
AI taking your linding industry in the next year to
two years?
Speaker 1 (33:25):
Oh?
Speaker 6 (33:25):
I think it just could be consumer direct. It'll be
the consumer will be able to just go right on
to what we were talking about. It'll be able to
tap into. It's just about everything you need and you'll
submit it, they'll verify it, they'll scan it. It's amazing
what AI can read and on your documents already, they're
doing it already.
Speaker 1 (33:42):
So yeah, Corey thirty seconds, where's your industry going there?
Speaker 5 (33:46):
I think that'll be a big game changer for us.
On the loan side, you're still going to need people,
but maybe the title side of it will change a lot.
We'll do another show on tokenization and how you can start.
Not now, but eventually, I think these titles will go
to the tokenization beyond the blockchain. Very simple transfer so
Dwight can approve them in a half hour. We can
transfer the property in ten minutes. This whole thing takes
(34:07):
you know, less than us move in in the day.
Speaker 6 (34:09):
There you go.
Speaker 2 (34:10):
Yeah, fascinating boys, excellent, excellent job for these last two days.
Sure appreciate you. We'll do to get more on the
John Sanchez Show. God bless, have a great afternoon.
Speaker 1 (34:18):
Dwight Millard n MLSID Number two four one two five
nine a licensed mortgage loan officer with Highlands Residential Mortgage
Limited and Equal Housing Lender n MLSID number one three
four eight seven one. The information shared on this live
broadcast is for general information purposes only and does not
constitute financial or mortgage advice.
Speaker 2 (34:36):
Listeners should consult directly with a licensed mortgage professional for
guidance tailored to their specific situation.
Speaker 1 (34:42):
All loans are subject to credit approval and program guidelines.
Not all applicants will qualify. Loan terms and availability may
vary by state and are subject to change without notice.
Speaker 2 (34:52):
Highland's Residential Mortgage Limited is licensed in multiple states. For
a full list of state licenses and disclosures, please visit
http yes slash slash www dot Highlandsmortgage dot com backslash
licenses backslash. The views expressed during this program are their
own and do not necessarily reflect those of Highland's Residential
Mortgage Limited.
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