Matthew Cox: commitment

Transcript context

…It’s faster, yeah. Wow. So they catch a million dollars worth of loans. They called me up, and then they caught another million dollars, but they had already sold them to Household Bank. So, while I’m on the phone with the owner, his name’s Gary, and we’re talking, he’s like, “Look, this is what we found. This is this. This is what happened.” And I remember I said, “Gary, at the end of this conversation, if you think I’m cutting you a check for a million dollars,” I said, “I just don’t have it. I don’t have it.” This was when I owned the mortgage company. He says, “No, I’m asking you for your word that if any of these come back on us, they’re in Florida, they’re in your area. You’ll help us get rid of the properties. We’ll foreclose. We’re going to have to resell them. I don’t want to be flying down there. Just help us get rid of them.” I said, “Absolutely, of course, no problem.” I said, “Well, what are you going to do with them?” He goes, “Well, they’re going to be a part of a package, like a $3 million package we’re selling to Household Bank.” The other ones they had caught had already been sold. The ethical thing to do is to contact Household Bank, say, “We will buy those back. We are going to take care of…” It’s not what happened. In fact, Gary flew down a couple weeks later, took me and several of the brokers, not that broker, but several of the brokers out to dinner, had a few drinks, and he openly admitted. He’s like, “Look, I don’t care if all the loans have fraud in them, as long as they don’t come back on me. That’s what I’m concerned about.” Because there was a clawback clause for one year. He’s like, “So, if they can perform for one year, I don’t care.” That was it. How many people in the industry do you think are operating like this? And by this, I mean in the aforementioned gray area.…

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