FBR: F*cked Beyond Repair

Are any former FNLC'ers still holding on to their FBR stocks? Might as well claim them as a loss for tax purposes:

Friedman, Billings, Ramsey Group Receives Listing Standards Notice from the NYSE

ARLINGTON, Va., Nov. 7 /PRNewswire-FirstCall/ -- Friedman, Billings, Ramsey Group, Inc. (FBR Group) (NYSE: FBR ) today announced that on November 4, 2008, it was notified by the New York Stock Exchange (NYSE) that it was not in compliance with an NYSE continued listing standard in that the average price of its stock had fallen below $1.00 per share for a consecutive 30 trading-day period.

FBR Group intends to cure the deficiency and is exploring alternatives for curing the deficiency and restoring compliance with this continued listing standard. Under NYSE rules, FBR Group has six months from the date of the NYSE notice to do so.

FBR Group's common stock remains listed on the NYSE under the symbol FBR, but will be assigned a ".BC" indicator by the NYSE until compliance has been restored.

FBR Group's business operations, Securities and Exchange Commission reporting requirements, credit agreements, other debt obligations and its subsidiaries, including FBR Capital Markets Corporation (FBR Capital Markets) (Nasdaq: FBCM), are unaffected by this notification. FBR Capital Markets is a separately traded and managed public company.

Friedman, Billings, Ramsey Group, Inc. (NYSE: FBR) invests in mortgage-related assets and merchant banking opportunities. FBR is headquartered in the Washington, D.C. metropolitan area. For more information, please visit http://www.fbr.com/.

Wow - I wonder how money much Daddy and the Juniors lost thanks to their former corporate parents!

T Rex Has A New Tennant!

That's right, everybody's favorite office park has a new tennant - I'll give you three choices to guess who it is:

a) Bluth Industries

b) Enron

c) RPM Oversight

If you guessed "c" you're correct! Who wants to bet that Daddy and the Juniors are now residing in T Rex on First NLC's (bankrupt) dime?

Wow, talk about a "fresh" start, huh? With this kind of thinking, I'm sure RPM Oversight is basically being run as First NLC 2.0. In other words, this company is going to be just as much of a joke as the last one these bozos ran into the ground.

Can't wait for the RPM Oversight retail ops center to show up in Anaheim!

Researching RPM Oversight? Here Are Some Handy Links

This blog has received a fair amount of traffic lately from folks searching for "RPM Oversight" on search engines. For you folks who want to know why a blog about First NLC, a company that went bankrupt earlier this year, appears in the search results for RPM Oversight, it would probably help to explain that the majority of the RPM Oversight exec team also were members of First NLC's exec team.

The RPM contingency would love to have their misdeeds and past errors magically disappear as they attempt to start anew, but there are many, many people who were thrown under their bus as it sped out of town. These folks have all contributed to this blog's community, and I encourage you to take a look at the following links to get an idea of who is behind RPM Oversight and how they've conducted themselves. Enjoy.

http://lastnlc.blogspot.com/2007/05/did-you-know.html
http://lastnlc.blogspot.com/2007/05/job-searches-squashed.html
http://lastnlc.blogspot.com/2007/06/final-insult.html
http://lastnlc.blogspot.com/2008/01/bankrupt.html
http://lastnlc.blogspot.com/2008/02/of-watches-birthdays-and-ungratefulness.html
http://lastnlc.blogspot.com/2008/02/strange-but-true-tales-from-comments.html
http://lastnlc.blogspot.com/2008/02/50-million.html

Like A Phoenix Rises from the Ashes...Only This Is More Like A Turd Rising from the Sewer

Well, well, well. Guess who's back (besides me, of course)? Why, it's Daddy, Junior, "the other" Junior and all of their cronies. This time, they're disguised as RPM Oversight (thanks to blog reader Pete for giving us the heads-up). How ironic that the word "oversight" is in the company name, what with all of the crucial "oversights" these clowns had during the past couple of years. I also see that the utter failure and bankruptcy of FNLC wasn't mentioned in any of the exec bios, either. I guess that's just another "oversight," eh?

So, what does RPM Oversight do? According to the site:

"RPM Oversight thoroughly reviews and assesses the documentation, compliance, property value, and servicing records of every loan in every portfolio we manage."

Hmmm. Interesting. Since when are these guys concerned with "thoroughly reviewing" anything? I never realized that shipping boxes and boxes of documents out of Florida and into an unused office space in California was considered portfolio management, but to each his own...

Let's have a little fun with the "Who We Are" section of the site, shall we?

RPM Oversight is comprised of a group of highly skilled mortgage industry and legal veterans (and the Henschels, too) who specialize (don't you have to perform something on a regular basis to "specialize" in it?) in creating value and maximizing return on investments in residential mortgage loan and real estate portfolios (while cashing out assets and looking out for only the largest stakeholders when the ship starts sinking).

Our team (Daddy) has more than 100 years of combined experience in the real estate, legal, and mortgage lending industries, enabling us to assist (bilk) you in the purchase, rehabilitation, refinance, (liquidation, bankruptcy) and sale of loans for higher returns (to outstanding creditors).

Our hands-on approach allows for an indiviudal assessment of the documentation, compliance, property value and servicing records of every loan we manage, the result of which is increased returns for our clients (the jokes just write themselves, don't they?).

Our team has originated and sold more than $20 billion (worth $5 billion) in mortgage loans to Wall Street and other institutional investors (who can't come after us because we declared bankruptcy) over the last seven years (not including the past two, of course). We have negotiated the purchase and/or sale of more than $1 billion of distressed mortgage loans (including our own, but not Kent Cope's).

The company is headquartered in Boca Raton, Florida (T.Rex).

Negative Feedback For A Sob Story - Ain't It A Bitch?

Looks like the subjects of that CNN Money article aren't getting much sympathy in the wake of the subprime fallout. Instead of people feeling sorry for them, they seem to have garnered more than their fair share of criticism. Let's take a look, shall we?

First, we have Stu's Rusty Bucket, who has done a nice job of inserting his/her comments into the story, such as:

• Awesome! Keeping the dream alive, a mansion on the coast…
• This is the “we have no plan going forward” routine, also known as “we are waiting for something magical to happen and money to fall into our laps!!”
• Awesome, they switched from a gas guzzling corvette to a.. gas guzzling huge ass SUV!
• know!! Lets get a job selling houses.. that don’t sell in a market that is thrashing around and wallowing in its death throes! Awesome decision there Kent...just think how many sea shell necklaces and self designed bikini’s you need to sell to make that 10k minimum a month.

Ah, Stu - you are too good with words!

Here are some nuggets from 3D Commune:

• Notice they cashed in HER 401k? He is going to skip off to Mexico with his secretary and intact 401k
• A suburban - now THERE is an economy vehicle
• THE INDUSTRY TARNISHED ITSELF, and you were part of it, I guess its time to get out the silver polish baby!
• Yeah, let the government pay you to do nothing, its the American way

Free Republic has great comments as well. A sampling:

• Sorry, they made a heck of a lot of money, and don’t have anything saved? Stupid is as stupid does.
• So, he gave birth to the monster that ate him.He and his ilk built the castle of sand and now bitch that it's crumbling?
• (They) need to sell the Beemer, down-size the house, take the first job they can get and begin working their way up again. And quit whining.
• (She's) been without work since May of 2007???!!! Nobody wants her resume because it’s got subprime on it? Nobody? Not Target or the Food Lion? Gimme a break. The woman could be bringing in something and still run her jewelry and beachwear business.
• But surely you don’t expect them to take responsibility for their own actions??

And, my personal favorite:

(Executives) in the Sub Prime and other banking fields by extension, really have no marketable skills and are grossly overpaid.

Finally, let's not forget Frugal Jim, who questions whether they should even be allowed to collect unemployment:

• So you and I are paying unemployment for these people? We’re actually subsidizing the start up of two businesses? I always though unemployment was supposed to be for people who were actively seeking a job, but were unable to do so.

FNLC Alum On CNNMoney.com

Careers vanish after subprime 'free fall'

Kent and Mysti Cope were well-paid executives at subprime lenders who never thought the industry could disappear overnight. Now they're just trying to get by.

SAN CLEMENTE, Calif. (CNNMoney.com) -- Kent and Mysti Cope met and fell in love working for one of the nation's top subprime lenders. Now, their life has been turned upside down after the sudden implosion of the subprime mortgage industry.

Mysti was one of the last people out the door at New Century Financial, once the nation's No. 2 subprime lender. She had been in charge of e-commerce customer service with dozens of employees reporting to her. It was at New Century where the Copes met in 2000.

Kent worked for several of the firms that helped give birth to the industry, which specializes in making loans to people with less-than-perfect credit, in the 1990s. He has been out of work since August when he was laid off by Friedman, Billings, Ramsey Group (FBR) unit First NLC Financial Services.

"We're still both in shock that it could go from something so good to so bad so quick," said Kent, 59. "New Century in 60 days went from top of the heap to out of business."
The two didn't say exactly how much money they made at their last jobs but Kent admitted they each had six-figure incomes.

Today, they're trying to get by on his unemployment benefits of about $450 a week, which covers only about an eighth of the basic payments they owe every month.

Full article:
http://money.cnn.com/2008/03/31/news/economy/copes/index.htm?postversion=2008033105

The Latest News...And It Ain't Good for FNLC

Our friends over at the Mortgage Lender Implode-O-Meter say things are looking dire in Boca Raton:

"Have we seen the last of First NLC? It's anybody's guess, but recent posters on Last NLC (note: thanks for the shout-out) seem to be convinced, if not actually happy about it.

"Layoffs and branch closures have been going on some time now, the most recent of which came to our attention when it was reported here that another 100 employees were let go and the Anaheim, CA office was also being consolidated to their East Coast headquarters. Calls to the offices still listed on CityTownInfo.com revealed only 2 locations still receiving calls: Anaheim, CA's answering system is still on, and the headquarters in Boca Raton, FL. The company's web site now shows just one location - Boca Raton. For those tracking the numbers, that represents 24 offices nationwide, and now, approximately 725 of 1,350 employees gone in the consolidation.

"Concerns over the company's continued viability stem largely from losses reported in their parent company's 3rd quarter financial statements. On 10-25-07, Reuters reported that FBR Group (Friedman Billings Ramsey Group, Inc.) realized write-offs of $90 million associated with the sale of securitized loans, and an additional loss of $67 million from the sale of mortgage-backed securities. A company press release of the same date revealed the following additional losses:

• "an economic loss of $17.2 million(2) associated with restructuring and operating costs at First NLC Financial Services (FNLC), of which $15 million was incurred prior to the agreement announced in July to sell FNLC to an affiliate of Sun Capital Partners (Sun Capital), and
• "a $27 million valuation loss relating to the portfolio of conforming and non-conforming loans originated by FNLC and for which FBR Group took ownership under the Sun Capital sale agreement, reducing the value of those loans to $203 million.
  

"FBR Group announced its plans to sell an 80% share in First NLC to a Sun Capital Partners affiliate on 7-26-07, as part of a recapitalization plan to enable the struggling sub-prime lender to continue operations and satisfy a negotiated settlement of this employee class action lawsuit which received preliminary court approval in late September. The transfer to Sun Capital is expected to be completed by 2007 year end."

Pretty soon, they'll be running this company out of the family's garage.

Here are some additional notes from The Truth About Mortgage:

• According to sources, First NLC Financial Services plans to close 24 branches nationwide, shuttering their operations on the west coast and cutting more than 100 jobs in the process.
• It is believed that only six retail branches will remain open, along with an operations center at its headquarters in Boca Raton, Florida.
• I’ve been told that most of the 100-odd employees at its loan center in Anaheim, California have been laid off as a result of the migration to the east coast.
• In August, First NLC laid off 645 employees, or nearly half of its 1,350 member work force as the mortgage crisis continued to deteriorate.
• First NLC is one of the top non-prime residential mortgage lenders in the nation, originating over $7.4 billion in mortgage loans in 2006.
  FBR bought the subprime lending unit in 2005 for $101 million and arranged a sale this summer to an affiliate of private equity firm Sun Capital Partners.

Gone Daddy, Gone

Rumours are flying that First NLC shut down this past Friday. I haven't received confirmation yet - it may be only another ops center that has closed. Whatever the case, my sympathy goes out to the few working folks who were just let go during the holiday season.

Of course, if the company has been closed for good, my overwhelming joy is reserved for the the execs that ran this company into the ground - they have finally attained complete and total failure. Couldn't happen to a nicer group of selfish, arrogant a-holes. You get what you deserve. Life just handed you a "doing what is required" card. I hope you all lost your a$$es in stock while being blackballed in this industry.

More Shutdowns

Chicago's call center has been shut down - no surprise. Rumors of additional shutdowns (what's left to shut down at this point? The vending machines?) continue.

I thought I'd share this comment from a former FNLC'er that was posted a couple of days ago - this person is also happy to see upper management flailing. Enjoy:

I'm a former FNLCer and laying me off was the best favor FNLC ever did for me. I, now, work for a company that has a bright future and employees, including me, are happy and don’t live in fear. It's such a refreshing change. I read people's blog entries and frankly I'm amazed and a bit confused as to why people still choose to continue to work for them...especially in light of all that has happened. FNLC's senior management (a.k.a. the Hxxxxxs and their kiss a$$ lackeys) are the worst so-called “management” team I’ve ever seen and the company is obviously going down the tubes. I hope you do realize senior management doesn’t care anything about you, your family or your well being. I do understand how difficult the job market is but it is possible to move on. Most of the employees I had the pleasure of getting know during my time at FLNC were good hardworking people. Have faith in yourself! But, in spirit of the holiday season, I want to say "thank you" to Mr. Hxxxxx and all of his minions for laying me off. No doubt it was challenging for me at first but I prevailed! I take comfort in knowing the Henchel’s company is failing while I am growing professionally and am financial better off than I was work for your sad excuse of a company. It really is sad to have such ill will toward a group of people but this particular group doesn’t deserve anyone’s compassion or respect since they never bothered to give either to any of their employees. I am a person that does believe in karma. What goes around comes around. Mr. Hxxxx and all your minions, keep that in mind!

Bright Future In Retail

As many of you know by now, we've basically shut down our wholesale operations. We couldn't even keep it going in our own Florida backyard. I'm surprised the wholesale website ("Committed to Our Future Together" with a nifty picture of T. Rex) is still live. I guess they want to get full value from the folks that redesigned it. Plus, where else are we going to talk about FIRSTQUAL?

Retail is still limping along, but eventually there isn't going to be anything left to consolidate. Maybe Sun will just hold onto the brand and relaunch it when the market rebounds (which is still a long way away, according to all financial forecasters).

By the way, have any of you seen Jim Cramer's mortgage industry meltdown? Good stuff.