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So What Just Produce Yous Cash Inwards One's Chips Amongst Depository Fiscal Establishment Of The Cyberspace Stock?

There are exclusively 3 banks inwards America who have

(a) a marketplace position capitalisation greater than $1 billion.
(b) a cost to tangible mass greater than three, and
(c) a cost to historic earnings greater than twenty.

These are the most expensive banks inwards America. The raw information laid upwards is here (courtesy Capital IQ).

When y'all pay absolute top-dollar for a banking firm stock y'all require to travel getting something special - either a amend franchise, amend administration or the like. There has to travel something that sets your banking firm apart from the run-of-the-mill franchises.

Otherwise - dearest shareholders - your investment lies somewhere inwards the arrive at betwixt mere overpayment in addition to existence outright ripped off.

Bank of the Internet (NASDAQ:BOFI) is 1 of the 3 highest priced banks inwards America.

There is a "story" near what y'all are getting - a high increment ultra-low cost meshing franchise.

But this weblog post service is non near the "story" - its near the reality. The reality is y'all are getting a 2005-style jumbo mortgage lender (with other strange high peril loans) funded primarily yesteryear high cost brokered deposit.

These are to a greater extent than or less examples from BofI's correspondent websites to explicate what the really do. This 1 describes BofI every bit habitation for "portfolio Niche Jumbo Lending".




The coin quote: "The bulk of our loans are approved amongst either a credit or collateral exception".

In other words this is an exception lender. The exceptions are to their stated underwriting standards.

And because it lends yesteryear exception y'all are critically subject on who is blessing the exception loans.

Chasing through LinkedIn in addition to other sources it appears that many of the people who approve the exceptions are from IndyMac in addition to Thornburg Mortgage - both bankrupt jumbo mortgage lenders.

Whatever: hither are a few to a greater extent than adverts for BofI Federal Bank - these are adverts distributed to mortgage brokers:


For those who don't read the pictures it says "Self employed creative individual wants to purchase a studio inwards New York. BOFI Federal Bank tin produce that."

The pic is of an particular artist. He throws hurting in addition to in that location is none on his clothes. And in that location is to a greater extent than inwards this advert:




If y'all are a self-employed creative individual I gauge they offering y'all an "exception".

Indeed they brand a affair of it. Exception lending is - to quote the hollo - an "art". And next LinkedIn nosotros tin meet the artists come upwards from IndyMac in addition to Thornburg Mortgage...





John

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