1650 E. River Road
First Magnus Executives Starting a New Mortgage Company: Stonewater Mortgage
From the executives who brought you the First Magnus disaster, please welcome their new endeavor called Stonewater Mortgage Corporation!
Seriously, the Arizona Corporation Commission approved Stonewater and three related corporations on Jan 31 and Feb 1, 2008. Some of the companies have ties to a Delaware holding company, and one lists the name of First Magnus Chief Operating Officer Karl F.W. Young. Also, a domain-registry database shows that the web address stonewatermortgage.com has been reserved by Gforce-1, a partnership formed by First Magnus President and CEO G.S. Jaggi and Young. The same people that ran First Magnus into massive problems are getting ready to start up a new entity.
Now to be fair, the First Magnus situation (credit crunch) that led to the bankruptcy of the largest private mortgage company in America was not entirely their fault, but their lending practices coupled with their high volume of sales was their responsibility. First Magnus was a leading mortgage company selling the now infamous “option ARM’s” and other sup-prime products on a large scale.
My guess is that Stonewater Mortgage will be a successful business because of the experience that the two leading execs have and the funding that they should be able to get behind the new company for marketing and the start-up costs associated with a mortgage company. Don’t be surprised if in 3-5 years, Stonewater Mortgage is a leading mortgage broker in the Tucson area. First Magnus was very proactive in marketing and had a very prominent position in the local and national mortgage community until their collapse, which is still unfolding. We’ll see how much success the new company obtains, but with the depressed mortgage broker business currently being experienced across America today, they may be better off taking some time before opening up shop in this market again.
February 25th, 2008 at 9:09 am
“We’ll see how much success the new company obtains, but with the depressed mortgage broker business currently being experienced across America today, they may be better off taking some time before opening up shop in this market again.”
If the Stonewater Mortgage folks are smart they’ll introduce the concept of home equity acceleration to their clients — they’ll have instant success:
More and more folks are using a Home Equity Line of Credit (HELOC) or a business-line-of-credit (BLOC) or personal-line-of-credit (PLOC) as an interest cancellation account to accelerate their home equity and payoff their home *years* sooner than listed on their mortgage amortization schedule.
Unfortunately, today’s Real Estate market means that folks can no longer count on appreciation to build home equity. Those who realize that they need to pay down their current mortgage debt are looking for alternate ways to aggressively (yet safely) build equity.
And they’ve discovered a perfect online system to do that; they can focus on their wealth accumulation goals while accelerating their equity simply by using an Advanced Line of Credit (ALOC) to ‘power’ the Money Merge Account™ financial solutions program.
A typical 30 year loan (of whatever type) can be paid down in 1/3 to 1/2 the time — it’s a great way to save *huge* amounts of income by eliminating a mortgage amortization front-end interest load. (On a million-plus dollar home, I’ve personally seen where the Money Merge Account™ program will save the homeowner $750,000 in interest charges!)
And the best thing – homeowners don’t have to refinance their existing mortgage or, in most cases, make any adjustments to their lifestyle.
It is unfortunate that most of us were never taught to follow three essential principles: (1) Avoid paying interest, whenever possible, (2) Use other people’s money, whenever possible and (3) Find and use a financial system that will guide you, especially if you have the tendency to go off-track. The Money Merge Account™ software and the program’s counselors use these principles to keep each homeowner focused on their wealth accumulation goals.
I’d be happy to provide further details…
March 12th, 2008 at 8:51 am
I think the most important step is to be realistic in what you can and cannot do. I’ve seen so many first time home buyers jump into something they cannot afford only because they have big dreams.
Do your homework done first if you are thinking about taking out a loan or mortgage. The time spent looking into your options can save you a good deal of money later on.
May 24th, 2008 at 7:35 pm
[…] crunch that led to the bankruptcy of the largest private mortgage company in America was not entirehttp://www.sellingtucsonrealestate.com/blog/first-magnus-executives-starting-a-new-mortgage-company-…THE MEDIA BUSINESS Sons File for Bankruptcy for Private Maxwell …The two family-owned companies […]
July 8th, 2008 at 1:51 pm
These guys are crooks they took their money and ran and screwed their former 5000 employees. They should be in JAIL !!!!
They spent money and hired idiots to run the show for them while they got rich. Only an idiot would go back into the wholesale business and approach brokers since many of them have closed their doors.
MAYBE THEY SHOULD PAY THE EMPLOYEES MONEY THAT IS OWED !!!!!!!!!!!!!!!!!!!!!!