Capstone Mortgage Services and Prefered Mortgages

marvin

Another Article

http://www.ftadviser.com/MortgageAdviser/Mortgages/Lenders/News/article/20080924/aaa4b29a-84d2-11dd-9dcc-00144f2af8e8/Barclays-will-not-go-after-Lehmans-Euro-assets.jsp

Seems to all but rule out any main stream solution reading between the lines (not just Barclay's)

Again it refers to Lehman's mortgage portfolio as "toxic" surely can't have that many non payers! Never missed on mine but then I am on a "near prime" deal. I suppose with the worst of anything there is what lies beneath that.

midge61

"In terms of the domestic business that Lehman Brothers had over here it will struggle to find much value."

This is from the article you posted Marvin.
Like you my mort is all up to date but I think it is the fact that all of SPML mort have been packaged and then traded over and over that makes them bad. We have all been lumped together good and bad.

It seems to me that once packaged and traded they stop being "mortgages" as such. If someone with a SPML mort is having difficulty they will not alter the terms of the mort in ANY way and will go straight for re-possession. Surely the FSA need to step in and help with these mortgages especially if no one will take them on because they are classed as "toxic", otherwise what will happen ..........will we all be faced with re-possession?

midge61

Just found this in the Times

Dan Schwarzmann, one of four PwC partners handling efforts to sell Lehman’s European assets, said that he hoped to sell Capstone Group, the bank’s mortgage servicing operations, within the next four to six weeks. It is solvent and attached to several Lehman loan books totalling more than $1 billion (£562 million). If possible, it will sell them on as a single asset

jesdan

I know this is a standard letter and one to try to stop people panicking but I received today a letter from SPML/Capstone which read the following:

"As you may be aware from recent news reports, certain companies within the Lehman Brothers group were placed into administration.

SPML forms part of the Lehman Brothers group, however, we can confirm that SPML and its specialist servicer, Capstone, are not in administration and will carry on with "business as usual".

The status of your mortgage is not affected in any way by the recent events concerning Lehman Brothers and you should continue to make your repayments as and when they fall due"

I also know that (as I phoned to make my mortgage payment) there is an option on the phone menu which is for queries regarding Lehman Brothers but I suspect it just says the above.

marvin

jesdan wrote: »

I know this is a standard letter and one to try to stop people panicking but I received today a letter from SPML/Capstone which read the following:

"As you may be aware from recent news reports, certain companies within the Lehman Brothers group were placed into administration.

SPML forms part of the Lehman Brothers group, however, we can confirm that SPML and its specialist servicer, Capstone, are not in administration and will carry on with "business as usual".

The status of your mortgage is not affected in any way by the recent events concerning Lehman Brothers and you should continue to make your repayments as and when they fall due"

I also know that (as I phoned to make my mortgage payment) there is an option on the phone menu which is for queries regarding Lehman Brothers but I suspect it just says the above.

Thank you for that

That all sounds good but tbh they could have put a statement like that on the website or posted out before (I receive nothing from Prefered at all except my annual statement since I have been a custome no notices aboout the current rate etc.) and would have gone to my broker for info but they went bust earlier this year!

I suppose time will tell but yes certain companies are in administration and is Capstone an asset of one of those companies?

beaujolais-nouveau

marvin wrote: »

Thank you for that

That all sounds good but tbh they could have put a statement like that on the website or posted out before ... I suppose time will tell but yes certain companies are in administration and is Capstone an asset of one of those companies?

Hmmn. I would take that statement with a big pinch of salt. SPML became an wholly owned subsidiary of Lehman Brothers in 2002. Doesn't it mean that SPML will be sold off, if possible, by the administrators to pay Lehman's creditors.

I'll believe that statement when it is posted on their web site. SPML can't do anything without the permission of PwC.

claire1234

midge61 wrote: »

Just found this in the Times

Dan Schwarzmann, one of four PwC partners handling efforts to sell Lehman’s European assets, said that he hoped to sell Capstone Group, the bank’s mortgage servicing operations, within the next four to six weeks. It is solvent and attached to several Lehman loan books totalling more than $1 billion (£562 million). If possible, it will sell them on as a single asset

hi there,

we recieved a letter this morning about the recent new and reports, kind of a generated one,

did a quick search and found this thread,
i was reading the post i have quoted and wondering what happens if they cant sell on the loans/mortgages??

all our payments are up to date,

thanks claire

midge61

Hi

I got my letter this morning too but to be honest I don't believe a word they say. I think it will be sold off if possible but that's if they can price it!

marvin

claire1234 wrote: »

hi there,

we recieved a letter this morning about the recent new and reports, kind of a generated one,

did a quick search and found this thread,
i was reading the post i have quoted and wondering what happens if they cant sell on the loans/mortgages??

all our payments are up to date,

thanks claire

Hi to try and answer the question as I understand it (the answer that is not the question) but I am no expert.

It is the administrators job to get the best value for the creditors of the business that has gone bust. It is therefore extremely unlikely they will not sell the assets (our mortgages). I think the question really is how much for and to whom.

If the worst does happen and they fail to sell the assets on in bulk then our mortgages become an asset of the company to be realised and they can request full repayment (this would force everyone that can to remortgage and everyone that can't and who do not have the cash at hand to be repossessed or sell quickly.)

But I restress again and again it is very very unlikely to ever come to that. The main point is to whom not anything else.

Thing is for now don't worry there is little we can do about the situation (have emailed Darling and asked him why they allowed this to happen, I don't expect an answer!) lets just try and be informed as much as possible.

Myself I was looking to remortgage anyway in December this year at the end of my current deal and had already had some talks with a new broker about that (happy to hear from other brokers too by PM) earlier this year long before Lehman's went bust.

But please read you Hitchhiker's Guide and observe the front cover DON'T PANIC!

Sammy_Girl

This is a great thread. I haven't received any letter from Capstone so thank you for the updates Guys

We will remortgage (hopefully) when our fixed rate ends in March 2009, so I hope nothing drastic happens!!

I'm not panicking, but out of interest if the worst of the worst of the worst happens and they force us all to sell/remortgage, would we still be liable for the early repayment charge (if on fixed rate)?