Tucson AZ Home Loan Info

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Bank of America Merrill Lynch: "Higher Oil Prices Good For Stock Market"

BAML: Mike in Tucson, AZ mortgage lender"Some analysts think the U.S. markets can weather the storm of higher oil prices. But Bank of America Merrill Lynch is doing them one better: They see higher oil prices as a “net positive” for their bullish outlook."  Dave Kansas

$2,000 per month gas bill

A loan officer friend of mine at Sunstreet Mortgage, LLC commutes from Tucson to Sierra Vista every day. 

Her gas bill last month topped $2,000.  That was before prices in Tucson (usually the lowest in the US) shot up to $3.56 per gallon.  I'll bet she doesn't share BAML's rosy outlook on the price of oil.  And that's the reason for this post.

Elephants can step on youElephant's Focus:  the Stock Market, not the Real Estate Market

Are the Big Banks your bread and butter as an Agent listing and selling REOs and Short Sales?

Is the health of Bank of America's mortgage portfolio a driving force in the giant's business model?  Don't count on it.  We in the Real Estate industry are small fish, as this article yesterday on Bloomberg clearly illustrates.

There's a disconnect between Bank of America's mortgage portfolio operation and the focus of its operations as a global entity.  Higher oil prices may be a problem for you and me, but in the big scheme of things, Bank of America is okay with that.

Sidebar: The Elephant is an Investment Company

I'm willing to bet that Bank of America's purchase of Merrill Lynch in 2009 (funded by the second round of bail out money) slipped under your radar.  It did mine.

The portion of the elephant that we see is REOs and mortgage products.  That's our livelihood right now, but Bank of America's website paints a different picture:  "Bank of America Merrill Lynch focuses on middle-market and large corporations, institutional investors, financial institutions and government entities."

Takeaway:  Don't cozy up to the elephant

My focus day in and day out is keeping my REALTOR clients happy.  I do that by making sure that their purchase clients have a smooth, successful transaction.

What's your focus?  You'll want to make sure that it's centered around your customer base, and not some entity that will step on you and not even notice.  Elephants can do that...

elephant image
courtesy Google Images

_____________________

I'm Mike in Tucson, your preferred Tucson Arizona Mortgage Lender.

NMLS #223495

SUNSTREET MORTGAGE llc ~ Correspondent Mortgage Bank
Offices (AZ) Mesa, Tucson, Sierra Vista, & Nogales.

 

Comment balloon 22 commentsMike Jones • March 09 2011 06:42AM

Comments

Good morning, Mike. I don't share Merrill's BS view of America...

Posted by TeamCHI - Complete Home Inspections, Inc., Home Inspectons - Nashville, TN area - 615.661.029 (Complete Home Inspections, Inc.) over 8 years ago

Michael,

Good morning yourself!  Thanks for being the first to comment.

Mike in Tucson

Posted by Mike Jones, Mike Jones NMLS 223495 (SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) ) over 8 years ago

"I'm willing to bet that Bank of America's purchase of Merrill Lynch in 2009 (funded by the second round of bail out money) slipped under your radar.  It did mine."

IT DID NOT MINE!

Not one expenditure of TARP or Stimulous money escaped my view. 

The Gramm-Leach-Bliley Act), also known as the Financial Services Modernization Act of 1999, will go down in history as one of the most economically and financially descructive Congressional actions in history. 

Upon learning that one of the senior economic advisors to Senator McCain's presidential campaign, it was clear that we were doomed.

 

Posted by Lenn Harley, Real Estate Broker - Virginia & Maryland (Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate) over 8 years ago

One thing now is you dont see many of the B of A Reo's out there I think because of robo signing...they are sitting on a lot of vacant homes...I dont know how the sustain all this.

Posted by Chuck Carstensen, Minnesota Real Estate Expert (RE/MAX Results) over 8 years ago

Mike...

It just more reason to believe that 2012 might really be the year!

Posted by Richard Weisser, Richard Weisser Retired Real Estate Professional (Richard Weisser Realty) over 8 years ago

Mike - while the price of gas is indeed extremely high for the US, it is still less than half of what any EU country has to pay!

Posted by Barbara-Jo Roberts Berberi, MA, PSA, TRC - Greater Clearwater Florida Residential Real Estate Professional, Palm Harbor, Dunedin, Clearwater, Safety Harbor (Charles Rutenberg Realty) over 8 years ago

Barbara-Jo,

Why should I care?!

Richard,

It just may be.

Chuck,

It might be more of a problem for them than they're letting on right now.

Lenn,

I knew you would be on top of things.

Mike in Tucson

 

Posted by Mike Jones, Mike Jones NMLS 223495 (SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) ) over 8 years ago

GOOD MORNING MIKE!  Congrats on the feature -- OK so right now I am focused on the $2k gas bill....! 

Posted by Gabrielle Kamahele Rhind, Broker/Owner (KGC Properties LLC, Tucson Property Management & Real Estate) over 8 years ago

Mike, it appears they aren't interested in the little guys. If they have to trample over them, they will do it to increase that profit margin. When is your loan officer friend moving to Sierra Vista?

Posted by Michael Setunsky, Your Commercial Real Estate Link to Northern VA over 8 years ago

I worked as a commodoties trader in the past and one thing the public or BoA in this case, seems to forget is all those truckers delivering goods and products from factory to distribution add their gas bill on top of the goods. So increased gas prices = increased cost of goods. Not what we need when our incomes are shrinking. Great Post!

Posted by Eric Brickley (Zenith Mortgage Advisors (Milford,MA)) over 8 years ago

Greed and profit drive oil prices, under the defense of free market supply and demand.  if supply and demand were truly drivers, prices would be down, as inventories and supplies are near all time highs while demand is down from previous years

Posted by Jason Burkholder, Associate Broker, Realtor, e-Pro, CMS (Weichert, Realtors - Welcome Home) over 8 years ago

Bank of America will chalk up stepping on a relationship to "doing right for shareholders". 

Posted by David Krushinsky, AZ MB-0949619 MLO NMLS #202115 (Dk Home Loans, LLC) over 8 years ago

Hey...what is new ??? Big corporations making profit by tramping the little people.

Posted by Les & Sarah Oswald, Broker, Realtor and Investor (Realty One Group) over 8 years ago

Shareholders hold the cards and are working in their best interest not anyone elses.

Posted by Sajy Mathew, Making your real estate dreams become a reality! (Coldwell Banker Residential Brokerage) over 8 years ago

I've heard BoA gets money to hold on to properties rather than foreclose.  I'm not able to substantiate that fact, but...Why would they care gas prices not go up?  The name "Bank of America" is ironic because they could care less about Americans.  I guess they're looking to become "Bank of the World." Then all the more reason to be happy over higher gas prices.

Posted by Pamela Seley, Residential Real Estate Agent serving SW RivCo CA (West Coast Realty Division) over 8 years ago

There is a book called "The Shock Doctrine, The Rise of Disaster Capitalism" 

 

Posted by Carla Muss-Jacobs, RETIRED (RETIRED / State License is Inactive) over 8 years ago

Mike, WOW $2,000 in gas in one month????  Time to park the cars and do a little more walking :)

I agree with Pamela Seley, Bank of America is certainly not for America.

 

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) over 8 years ago

Mike,

Your friend at Sunstreet Mortgage, LLC is likely guilty of hysterical puffery! Worse yet we're all ready to accept her hysteria.

A calmer look would show that she either chose to work at least 72 miles from home or chose to live 72 miles from work.

I checked Mapquest, but we don't have addresses home could be on either side of Sierra Vista as could Sunstreet relevant to Tucson, so I used 75 miles each way for 150 miles a day. 5 days a week is then 750 miles a week, there are 4.3 weeks in a month totaling 3,225 miles a month!

At say $3.50/gal her $2,000 bought 571 gallons that means she's getting about 5.65 MPG! Of course she probably drives some additional miles, but she could commute with a Class A Motor Home and save money.

Of course gas prices are absurd! But, they're relevant to the choices we make! Let's talk about her gas logicly! I don't dough she may have spent $2,000, but there's allot she not told us! At 20MPG her 3,225 miles would have cost $574 at 30MPG only $383!

We can't hope to win if we accept such nonsense!

I'm not going to go into the Elephantine. It's real but we'd have to get totally lodgical not hysterically panicked.

Bill

Posted by William J. Archambault, Jr. (The Real Estate Investment Institute ) over 8 years ago

Bill,

Thanks for the phone call!  The point of my blog has to do with the elephant, not the price of gas.  I sat up in bed at 2:00, wide awake, and decided that blogging for awhile would put me back to sleep.  Didn't work.  There's more to the story of the $2,000 gas bill, but it wasn't pertinent to the conversation.  My friend's far from hysterical.  ...come to think of it, though, she is funny!

George,

They ought to rename the bank, don't you think?

Carla,

I'll check it out.

Pamela,

Ditto my comment to George.

Sajy,

You're right about the shareholders.  I'm not one, but it was my tax money that bailed out the Bank.

Sarah,

I actually like Elephants; I'm just wary when I'm around them.  They're bigger than I am, and we don't think the same way.

David,

I'm all for shareholder value. so long as I'm a shareholder.

Jason,

Prices would be down if we had drilled in ANWR.

Eric,

 I appreciate your comment!

Michael,

She and her family moved to Tucson for other reasons, but her business in SV keeps her going back.

Gab,

Thanks for stopping by to comment.  I went back to bed after that second comment.

Mike in Tucson

Posted by Mike Jones, Mike Jones NMLS 223495 (SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) ) over 8 years ago

I know several people that have concerns on gas bills and the situation that adds to it.. Love the post.

Posted by 1~Judi Barrett, BS Ed, Integrity Real Estate Services -IDABEL OK (Integrity Real Estate Services 118 SE AVE N, Idabel, OK 74745) over 8 years ago

Mike, enjoy the post. BofA has always been suspicious to me. Everytime someone mentions a loan from them I cringe. Too many horror stories. BAML's greed is not surprising. What's around the corner for them tomorrow?

Posted by Douglas Trudeau, MBA, Assoc. Broker, Selling Tucson Real Estate (Tierra Antigua Realty) over 8 years ago

The Beast just gets larger in America. TARP money was suppose to stimulate the economy. We are still waiting for it.

Posted by Harry F. D'Elia, Investor , Mentor, GRI, Radio, CIPS, REOs, ABR (RentVest) over 8 years ago

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