You're not going to believe which organization just had to sell their headquarters building on a short sale. This is so embarrassing. Ready for this?
The Mortgage Banker's Association.
No, this is not a joke. The Mortgage Banker's Association (MBA), sold its Washington, DC headquarters building on a short sale for $41.3 Million, a little more than half the $79 Million they originally financed in 2007.
Why is this so incredibly embarrassing? Oh boy, where do I begin…
The Mortgage Bankers Association is the national association representing the real estate finance industry with over 2,400 member companies, including all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, life insurance companies and others in the mortgage lending field. Their board of directors include notable financial titans from companies such as JPMorgan Chase and KeyCorp. In short, they ARE the mortgage industry.
But it gets even better. The following excerpt is from their “About Us” page on their website. Listen to what they claim they do (and the bold parts are my additions)…
“…MBA invests in communities across the nation by ensuring the continued strength of the nation's residential and commercial real estate markets; expanding homeownership and extending access to affordable housing to all Americans and supporting financial literacy efforts.”
HA! There's a great way to ensure continued strength…lend to anyone and everyone and create the greatest real estate bubble in American history.
And “financial literacy”, really? How more illiterate on finances can one be then to over borrow on your own headquarters by $38 Million?
Note to self, don't take financial literacy lessons from the Mortgage Banker's Association.
OK, maybe I'm being too harsh on these folks. After all, hindsight is 20/20 and who would have been able to predict the current financial collapse?
Oh wait, MBA may have.
That's right, if anyone would have had the scoop on trends and changes in the industry, it would have been the Mortgage Banker's Association. Why do I say that? Let's read what else is on the MBA “About Us” page…
“…We provide up-to-the minute news and information to our members so they are better able to meet the needs of their customers. We host a variety of conferences and meetings that provide our members with the strategic tools, industry trends and resources they need to advance their business.”
If ANYONE could have seen this coming, it was the Mortgage Banker's Association.
In short, like I said, how embarrassing.
I'd love to hear your comments on this.