➡ The Economic Ninja talks about how big banks are set to overpower non-bank lenders like Rocket Mortgage, which have been lending large amounts to the real estate market. These non-bank lenders, not governed by traditional banking rules, may face trouble as they lack access to bailout funds in case of a crisis. This could lead to aggressive foreclosure on properties when borrowers can’t pay their mortgages. The situation is likened to the student loan crisis where private loans weren’t eligible for government bailouts.

➡ A financial crisis is predicted, similar to the Great Depression but shorter. This crisis will occur when a group of people stop paying their mortgages. Banks won’t simply forgive these debts, but will transfer them to stronger banks. This process, known as a backstop, will not result in people getting their houses paid off, but will instead strengthen the larger banks.➡ CNN is hinting at a possible economic collapse, with the stock market continuing to rise due to severe inflation. Despite the government printing more money to hide this, the situation may worsen when the next president is elected. However, this could be an opportunity for retail investors to become wealthy, as rich people often buy more when asset values decrease. It’s important to stay calm and think like a wealthy person during these times.

Big banks are about to absolutely destroy non-bank lenders. A very specific type of lender that’s out there, and many people do not realize it. Some of these lenders appear to be brokers, like they’re doing business with big banks, but they’re absolutely massive. They have been loaning out a ton of money into the real estate market and to describe what a non-bank lender is, these are lenders that lend money, primarily in the mortgage industry, for real estate, that are not part of the traditional banking system. Traditional meaning they roll underneath the rules of the Federal Reserve or they are a credit union that is governed by a body that governs credit unions.

They have different access to money. These lenders look for wholesale money and then they go and loan them out to their network of people. To give you an idea, the largest, it’s a very famous name, the largest non-bank lender out there is Rocket Mortgage. And to give you an idea, the scope of how much they loaned out, it says here in 2022, they originated 464,000 mortgages worth $127 billion. Now, can you say Evergrande? Evergrande in China? Check this out. How much debt? Does Evergrande have? Now, I’m about to show you something. So as of 2024, they had $300 billion in debt and $240 billion in assets.

Rocket Mortgage is one company that has been loaning out money on mortgages and these non-traditional lenders, they have very lax rules. If you remember, I did a story about eight months ago showing the stress on the mortgage industry and how Rocket Mortgage was leading the charge saying, you know what, you don’t need to put down 3%. You don’t even need to put down 2. We’re going to take you if you put down 1 and we’re going to lax the standards even more. We’re going to relax them. All right, so Rocket Mortgage has been exploding in growth since the pandemic.

It was already massive before that. This is where it gets dirty and this is where it gets really dangerous. You see, people that don’t have mortgages with traditional lenders, they don’t have the access to the bailout funds. Let me describe this because you’re not technically being bailed out, but if the bank that holds your mortgage is getting a bailout, they’re less likely to come take your house. Why? Because the federal government always rolls in and says you’re not going to foreclose on those people right away. What we’re going to do is we’re going to give you hush money or put a big old band-aid of $100 million and put a big band-aid over your balance sheet.

They say this is the big banks trying to describe this really light. So then the bank’s like, okay, we’ve got all these funds from the government. They’re hooking us up. They’re taking the really bad debt off of our books and they’re going to try and package those up and sell them into some pension fund. So, okay, the government said we’re not allowed to foreclose on everyone. Exactly like what happened back in 2000 or when the world shut down, let’s say. So, if you have a mortgage with a company that doesn’t have the backing of the Federal Reserve through the backing of the government, what’s going to happen is when you’re hurting, they don’t have a bailout and you can’t make your mortgage.

They’re going to come take your house and they’re going to come aggressively. They’re going to file every document they can. This is akin to what happened with student loans where a lot of students didn’t realize, I don’t have a government-backed student loan and all these people are getting bailouts or they’re getting dustings from the current administration of, you’re going to get some of your loans paid off. They go, well, why isn’t my loan getting paid off? Why am I not eligible? It’s because you went through a private company. You sourced a better deal or something like that.

We didn’t have that type of insurance. The insurance of the Federal Government. So, this is about to happen in the mortgage industry. I’ve got a story for you and they’re already setting this up to show you what they’re about to do because these big banks are going to swallow up the assets of these non-bank lenders. They’re going to grab them and they’re going to service them because I believe that the Federal Government is going to step in as this thing collapses even more and they say, hey, you know what, you’re the bad person.

We’ve already used our communist news network. That’s what I’m going to be reading from CNN. We’re going to decipher the behind the scenes. They’re laying the groundwork. The media is already laying the groundwork. You’ll see more and more rumblings about this in the coming months. Why? Because I said by June is when June is when the floodgates start to open and you see the foreclosure numbers pop. They’re just going to pop. It’s not going to be, you know, I bet you they go up by 50%, 100% based on current numbers, which compared to 2019 are very low.

I know that sounds crazy. The economy was collapsing in 2019. Interbank lending rate spiked over 12% to give you some scope of how big that is, show you the scope of that. During 9-11, the week of 9-11 and during the week of Lehman Brothers collapsing, the interbank lending rate went up like 6.2 and 6.6% respectively. Okay. So in 2019 to see the interbank lending rate spike to 12%, especially with fears. What was going on in China? There’s so many things wrong foreclosures were massive in 2019. Most people don’t understand that because it wasn’t in the news.

It was in obscure obscure real estate quarterly magazines because they didn’t want it to get out. Then honestly, was it six weeks after that? Covid started. It’s weird. So we’re going to see these foreclosures pop because of the Dodd-Frank Act, which now severely limits the amount of time or not. It severely handcuffs the banks when they can foreclose on on homes. Okay. It spans out the time farther. And then what happens is the government tries to play catch up and monetize the debt. Every seven to 10 years, banks go through these cycles of a large foreclosure cycle.

Okay. So what’s going to happen is the wardrobes are already beating and the media is going to want to start to attack these non-bank lenders like rocket mortgage. Okay. So check out this story. CNN says mortgage companies could intensify the next recession. U.S. officials warn says U.S. officials worry the next recession could be intensified by a cascading series of failures in the mortgage industry caused by crashing home prices, frozen financial markets and soaring delinquencies. The cool thing is, is that you and I have known about this for years. I’ve explained it numerous times. These cycles I’ve warned about this coming stock market crash.

And it’s funny because there are a certain percentage of human beings that physically can’t hear. They can’t listen. The difference between hearing and listening. Hearing you can hear audible sounds. Listening. You’re taking in the information that comes in. You’re processing it. And then you can actually relate it. You can speak it out. But there’s actually a lot of people that just hear things. Like they go ninja. You’ve been talking about the stock market crash in 2022, 2023. You’re right. I’ve said there’s a day this thing’s coming. I have no freaking clue that it’s a cycle. And if you’re not prepared for it, it comes at the worst moment because the masses aren’t ready for it.

Right. That means any collapse happens because the masses figure it out or the masses are affected. And so what happens is that means that the masses aren’t listening. Right. And that’s where you and I come in and we go scrape up everything else. Pennies on the dollar because they can’t afford anything. All right. So now this is what the pros are saying right now. They’re telling you everything that you and I both know. It says that they’re they’re expecting crashing home prices. They’re that’s their words not mine. Frozen financial frozen financial markets liquidity. Right. Or soaring delinquencies.

It says the U.S. Financial Stability Oversight Council a SWAT team of financial regulators. I bet you that’s pretty sweet. They got tactical pen holders formed after the 2008 crisis sounded the alarm on Friday about an increasingly influential corner of the industry that has largely escaped scrutiny. This is non-bank mortgage companies. Unlike traditional bank non-bank mortgage companies are heavily exposed to the swings in the mortgage market depend on funding that can dry up during times of stress and don’t have stable deposits to rely on the safety net. And unlike banks these companies are lightly regulated at the national level.

The F.O.S.C. the SWAT team of bankers warned that these unique vulnerabilities risk a domino effect in the future crisis where multiple mortgage companies fail. Borrowers are locked out of the mortgage market and the federal government is left holding the bag. So it says regulators federal regulators are calling for states and Congress to take action to address the risk posed here including creating an industry funded backstop to ease turmoil caused when a mortgage company goes under. Let me explain what that is. A backstop is not intended to help out the company like rocket mortgage. A backstop is you get a couple of banks together.

Let’s say Wells Fargo JPMorgan Chase and you say OK here’s the deal. Rocket mortgage is going under. You guys want those assets. Simply put right you want the assets. We’re not. And this is what’s really scary. There’s a certain segment of the population actually believes during this next crisis because it’s going to be a massive one. Right. It’s going to be like Great Depression style. It’ll be much shorter than the Great Depression of the 30s. But it will be that level. We’re talking. I’m not joking. There will be a day where you’re going to see high.

You know 20 percent unemployment. I know that sounds crazy. But you’re going to see these crazy things happen. And there are a lot of people that believe in this jet Jubilee. All the banks are just going to give you back your house. There you go. We screwed up. No it’s not how it works. It is impossible for that to happen. They could give you a haircut like they’re doing on student debt. Like hey you know what we’ll just knock off 10 percent. But the problem is by the time they do that the damage has already been done.

Right. So that’s just to stimulate the economy crash already happened. Stimulating an economy never happens before a crash. Most people have no concept of this. Yet they sit around and go no banks just going to give me my house. I actually physically know people that think this their Looney Tunes because in a world where a government has the ability to print money to oblivion and with the Federal Reserve they could take those assets pull them off balance. Well it’s on the balance sheet but they pull them aside and they never move them. So there’s no liquidity no money moving around.

It just stays a vault somewhere these assets. They could actually scave off hyperinflation. Right. Well here’s the problem. The big banks they go we’re going to build a backstop. You’re going to go take over those loans. So you’re not getting your house paid off. You’re not. End of story. And so the other thing is this crisis only comes when a certain group of people stop paying their mortgage. And here’s the other thing. It’s not that that group of people stop paying their mortgage forever. They just go we’re armed up where I’m done. I’m just I’m not going to get kicked out because most people understand that say this is the one thing that happens if everyone’s starting to do it.

And I knew this. I knew people did this. They’re so freaking stupid. I’m telling you co-workers of mine. They just said well why should I pay for my house payment back in 2008. I mean no one else is paying it because they’re seeing it in the news right. And they’re not getting kicked out and it’s not worth what I paid for it. So I’m just going to stop paying it. Well it destroyed their credit. They got out of the game and it took them like eight years to recover and get a new new house. Right.

And so a lot of people think that these banks are just going to roll over and give you their house. They’re not going to do that. What’s going to happen is the Fed goes to these stronger banks because the handful of six you know Bank of America Wells Fargo JP Morgan. There’s others. They go we want you to get bigger and stronger and more powerful. So what we’re going to do is you’re just going to get to take those dang houses. You get to take them. You get to take the mortgage and you own the mortgage and then you get to service the loan and in a lot of cases you’re going to force them to put their deposits in your bank.

Anyways you’re going to gain depositors and then you’re going to control it and we’re just going to go tell the CEOs of mortgage company rocket mortgage. Get out of here. Here’s here’s a million dollar bonus for keeping your mouth shut. Sign this NDA and get out of here. Good job getting us this book of homes and this is where too big to fail came came to be. Does this make sense to everybody. Let me know if it does say it does if it because I want people to understand the game. This is why it’s so important when we’re looking at these events that are taking place currently and they’re building up it gives you more reaffirming sort of this notion inside go.

Yeah I’m going to I’m going to keep my credit score solid. I’m going to get low on debt. This is the long game wealthy people did not become billionaires just playing the short game. That’s never how it makes money and I’m going to wait because for a certain period of time this doesn’t happen overnight. Rocket mortgage is trying to negotiate with its people. It’s trying to I mean obviously the markets imploding and we’re already seeing that we’re already seeing inventory increase days on market are increasing price adjustments. I don’t know any market in the country right now that doesn’t have it doesn’t take a price decrease of at least five percent to move that thing once it hits 30 days on market because there’s a lot of real estate agents that are going oh inventories light.

Let’s price is high and that’s it’s a trick that a lot of real estate agents do. They sit there and they go oh your house is worth X and you go yeah that’s what I want to hear. That’s just to get you in. They know more than likely we’re going to have to hit a price adjustment 30 days. We’re going to have to see the seller concede to something in 30 days or 40 days because they’re going to get freaked out. But hey it got the listing and that’s the thing. That’s where I’m showing you right now.

CNN is already working this and it looks it says right here as a 2022 non-bank mortgage companies originated originated. Think about this. Oh please understand how big of a deal this is. In 2022 non-bank mortgage companies originated about two thirds of U.S. mortgages and owned the servicing rights on 54 percent of the mortgage balances according to F.S.O.C. That’s up significantly from 2008. So now what does that mean first off not every loan or mortgage that a non-bank originates they keep they can sell it if it falls in the guidelines within the guidelines of Fannie and Freddie Mac right.

They can sell it to Fannie Freddie. Problem is Freddie Mac right now is actually investigating a lot of these non-bank lenders for selling them things and falsifying information. You can’t make this up. All right. This is why I’m diving into mortgages right now and tearing them apart and showing people how they can save a lot of money because this is scary times and you don’t want to dive in with just any lender. But that 54 percent of servicing understand this if their book of loans get too far out of whack as far as they’re the amount of homes that they are that are you know in distress or they’re slow paying or they’re not paying at all what happens is they can lose the rights to that servicing.

So that means again that means the federal government walks in and goes hey you screwed up your book of loans you loaned to a bunch of people you shouldn’t have and so you know what we’re going to do we’re going to take away your rights of service and that means they go give it to a big bank they go hand the mortgage servicing off to a big bank and then there’s some kind of negotiation what they’re going to do with those assets. So this is a very big deal.

The cool thing is is check this out and you know I do this for the algorithm but I also do it because I want to hear your your I want to get the pulse of who’s listening type one if you know this is a big deal if you know it’s a big deal you also know most people around you have no concept they don’t care about this and yes somebody’s asking is a non-bank lender a private lender. Absolutely. Now there’s different designations for for private lending and things like that.

But what I mean is they’re not a bank they’re not they’re a corporation that started borrowing money on the wholesale at the wholesale window and loaning it out to people. They’re not sitting there usually tapped they’re not tapped into the Fed funds. Well they actually they can be because I actually applied for that too. I was going to go down that road and open up a lending institution in 2017. One day I will I will own a bank but not now. I know it sounds crazy but I want to be a lender and not a borrower.

I hope you got something out of this. I appreciate you guys. I’m going to go and make some more videos but I just wanted to give you sort of a brief overview of what’s going on. CNN is already starting it. CNN is the mouthpiece for the banks and for the government and they start these low rumbling stories. You’re going to start seeing more and more of them and I’ll start showing you as they pick up and as they intensify. That’s the war drums beating of this next collapse. And again remember you’re in a severe inflationary collapse right now which means you’re going to continue to see the stock market go up until it does.

It’s going to keep going up because people are chasing yield. That’s why we had a banking crisis larger than 2008 last year and I know it sounds crazy because you’re like nothing is collapsing. The government is printing trillions and trillions of dollars now per year just to keep this hidden until they throw a tantrum. That tantrum I believe comes when the next president is elected. They’re going to pull the plug and I know it sounds crazy because most people don’t Why would they pull the plug? Their money is going to go down.

Yeah it doesn’t matter because they have the purse strings. They can borrow as much money as they want. If their assets go down in value wealthy people they don’t sell them. They go buy more. Okay so we all have to get out of poverty thinking. Stop thinking like poor people and we got to think like rich people. Rich people buy when assets go on sale. Retail people they run and cry. Okay so we are building an army you and I seriously I’m not joking of retail investors becoming powerful wealthy investors.

End of story. We keep our composure. We keep our cool and that is what makes winners. Hope you got something out of this. The economic ninja is out. [tr:trw].

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