April 01, 2008

Here's an expose on two laid-off New Century subprime execs, with over $10,000 a month in mortgage and other expenses, and a home crashing in value


So, should we feel sorry for them? Or happy to see their downfall as they helped create the problem?

Hundreds of thousands of REIC are going to be financially ruined during the downfall (along with millions of Americans). But they created the downfall which financially ruined them.

Oh, what to feel HP'ers? What to feel?


Schadenfreude? Mercy? Compassion? Rage? Forgiveness? I guess it'll be a case-by-case basis. First steps would be an apology, taking the blame, and an admission of guilt. And I don't think I've seen that from ANY realtor, mortgage broker, appraiser or REIC member yet. But damn, I can't but help feel sorry for these people. Everyone except Greg Swann that is.

Careers vanish after subprime 'free fall'

Kent and Mysti Cope were well-paid executives at subprime lenders who never thought the industry could disappear overnight. Now they're just trying to get by.

69 comments:

Todays PIG is tomorrows BACON said...

DIE U PIGS.

Enjoy the ramen.

Anonymous said...

F 'em all

Downturn Blues said...

Should feel schadenfreude, but don't. On the other hand, there are many people worse off in the world. Kent and Mysti seem to be dragging their feet in the face of a crisis. Are they still in denial?

Additional comments in the open thread.

Anonymous said...

I just read that earlier this evening, glad you picked it up.

For the mortgage broker couple-

Booooooo Hoooooooo !!!!!!!

Sell the dang house and get an apartment.

On the same page "America's Money: In their own words" is really good. Some sad stories and lessons to be learned. You'll know that this is going to last a long time when you see what's going on with regular people. I feel badly for the kids and for their parents that are doing the best they can.

Fruck all the finance types and govt people and greed mongers who have screwed this country.

Chris said...

My favorite line is how he " CUT BACK " by trading in his Corvette for a Suburban. OMFGOLOL!


He traded in a $45,000 dollar car for a $40,000 dollar truck that gets worse gas mileage.

HAHHAHAAH! WHAT A CUTBACK! Enjoy losing your house!

Eric said...

I feel no sympathy for them at all.
One, the housing market is collapsing and he's leaving the mortgage industry and going into real estate, Moron. Two, she's selling $hitty crap from home in a recession. Double Moron. Walk away from the house, get into a new line of business, maybe send her to college, she's in her 30's with plenty of time to start a new career. I'm guessing that they were attracted to the easy money.

Eric said...

Oh and the graphic summarizes my feelings exactly.

Anonymous said...

F'em, they deserve every little bit of the PAIN.

Dirty pigs. Come make fun of US "loosers" now, you f*cks.

Dny

Anonymous said...

I'm just surprised her name is Mysti. Every other woman I've run into in the REIC is named Cookie or some-such stupid-a$$ name.

Anonymous said...

Did anyone notice on the front of the newspaper that there is an ad for a contest to win a new MacBook or music player?

Despite the clear signs we are heading for a dire financial crisis, so many of us are still fixated on trendy gadgets and high-tech trinkets.

I remember last year when people were lining up to wait for hours to get their hands on the new Iphone.

The media devoted hours of coverage about this "must have" gadget and how "revolutionary" it would be.

I had the sinking feeling that I was seeing something that would be looked back upon as symbolic of the ignorance and waste of this period of time. All these people spending so much effort and money to get a new toy that would be in the garbage in a year or two. Replaced by another pretty "must have" gadget.

I wonder how many Iphone fans will be desperate to trade their glossy little Itoy for a warm meal in a year or two?

NEPA gal said...

I feel no pity. I have no mercy. When they were making all that money, they should have saved for a year or two and bought something outright. But, like all the other sheeple, they had to buy something way, way beyond their means. They spent and spent and spent. Sell and rent, folks. Start over.

We bought in the past (and will do the same if we buy again in the future) based on ONE INCOME. It's just the smart thing to do. If you buy and are house poor on two incomes...you're bound to be fucked sooner or later. If you lose both incomes, chances are there will be bigger fish to fry than worrying about your mortgage.

My favorite part was the trading in of one car for a Suburban. DERSH! How about a four cylinder Kia? Morons!

Marky Mark said...

All those earnings for so many years - and no savings to fall back on.

Anonymous said...

Did anyone see their pictures??

Sweet Baby Jesus...Talk about robbing the cradle KENT! Little Misty thought you were the King Dom Daddy over there at New Century, while you were buying her all those Coach bags and nice dinners, and now look at cha'...Loitering around the shanty in a track suit all day--Haaaaaaa

NO MORE AZZZZZ for you for a while!! Better get that car lot job faaast!

ALEX3191 said...

I would like to see the whole bunch of mortgage-industry imploding . I'm praying on that.
And then, in the aftermath of implosion, let's ask our Congress to make mortgage-business ILLEGAL (too painful, too risky for "homeowners", reic etc). Cause 30 or 40 years loan is just suicidal.
How you gonna buy a house ? 50% downpayment, the rest in max 5 years, full-doc loan. Then we gonna have true homeowneership, affordability ... MAKE IT TIGHT, EXTREMLY TIGHT !

Anonymous said...

In response to annnonymous April 01, 2008 11:06 AM

Very ironic indeed regarding the section on CNNs site entitled "America's Money: In their own words" about the struggles many are encountering.

Wasn't it just a year ago when CNN was running the "Millionaire's in the Making"?

Funny how things have changed.

Anonymous said...

Thats the hardest ive laughed in a long time, cant wait to see these two need-less eaters on the street. The attitude "I cant sell my house for what its worth" is unbelieveable! I will read it again tomorrow so i can laugh again.

Noodles said...

It's amazing how all these guys drank from the same cool-aid cup they offered to their "clients". I mean, look how over extended they got. All they all sold was "leverage". And they leveraged themselves right off a cliff.

Anonymous said...

F' compassion. They were foxes in the hen house for far too long. They had no problem pushing houses on people who couldn't afford them, and that they knew were over priced. Now they can sleep in the bed they made. (or perhaps outside the house in a fridge box)

tangelo mozilo said...

What a couple of geniuses.

A married couple who have locked themselves into $10,000 worth of monthly, non-discretionary obligations. And to boot, they both had the same job at the same industry with the SAME COMPANY!

Talk about putting all your eggs in one basket.

I wonder if they have any savings . . .

Schadenfreude. Definitely schadenfreude.

Mammoth said...

Let's see...out of work since August...deep in debt and incapable of cutting their spending until the spigot runs completely dry...she's 37 and he's 60.

Any bets on how much longer these two will remain together?

Anonymous said...

Bwahahahahah!

Anonymous said...

Nah, can't be. All the people in OC are quality individuals who live within their means. Really. Frank said so, and he's never wrong.

AZwatch said...

Their phony careers imploded and now their tenuous marriage is next.
Divorced/Separated by the end of the year for sure.
Happening all over Arizona too.

spamalot said...

I love how the husband tries to fix the mess they're in:

(1) cash out the wife's 401k (smart move!);
(2) trade in the Corvette (of course) for, of all things, a Surbuban; and
(3) get a RE license and hit those streets of gold!

There's a reason they are broke, and it's called stupidity. Darwin applied.

Anonymous said...

There are so many things wrong with this couple ... but to summarize ...

typical SoCa Americans.

I bet they will divorce in six months .. who is with me?

Anonymous said...

Bummer dude. I guess these OC yuppies will have to get some real jobs now. Join the Mexicans and do some real back breaking labor instead out in the strawberry fields instead of manning a telephone in a plush office all day.

Anonymous said...

Wow! Doesn't exactly fit my profile of executives. It's like someone smeared salary lipstick all over these pigs and the school of hard knocks just splashed it all off with bucket of freezing cold water.

If the executives had any brains, they would have been renting an apartment and dumping their bubbly 6 figure salaries into their savings accounts each month. They would be buying their 'dream house' for much less in today's market. But of course, they drank the kool aid and deluded themselves into thinking that they were actually worth that kind of money and things could only get better.

I don't believe the couple met 'on the job'. They have e-harmony written all over them. Isn't the guy like a hundred years old? And driving a Corvette around town? WTF? It's like 24/7 Halloween in that town.

I like how they traded in the Corvette for the Suburban. Oh yea, that will save you tons of money at 5 miles per gallon on CA gas prices, creeping around those parking lots that they refer as 'freeways' over there.

The wife is now trying to do a jewelry and beachware .COM? That's IT? That's all a former EXECUTIVE is qualified to do? Wow! Must have been one hell of a gravy train she was riding on during the party!

They are whining about how expensive it is to live in Orange County, but they can't seem the make the connection between that and the fact that even the biggest douchebags are earning 6 figure salaries for nothing and taking out jumbo loans for houses with pacific ocean views.

California is a huge fantasy land where money grows on trees of endless credit and the cost of living becomes completely detached from fundamentals that the majority of the rest of the country has to live.

All the intelligent Californian's realized that it was all a sham and happily cashed in their houses and left CA with their lottery winnings to buy an affordable home somewhere that is more connected to reality.

DIE YUPPIE SCUM said...

"I feel badly for the kids and for their parents that are doing the best they can."

Not me. F*ck the kids too. Put their stuff out on the curb and let it rain on them.

DIE YUPPIE SCUM, YOUR CHILDREN: DIE.

Lady Di said...

These people live near me, and this area is filled with people that are just like them. fake careers, provide no benefit, toxic, no valuable skills.

I don't feel sorry for them. They helped screw America.

Get a real job next time.

Leeches.

Anonymous said...

They were overpaid, glorified phone jockeys. They belong in a call center making $12/hr just like the rest of The OC. My guess is she had a degree in psychology and he had a degree in marketing or no degree at all. These are typical of the type of of people in charge of most financial institutions. Most of the banks are run by people with a degree in Arts, English or Psychology while the execs play golf. They have no clue about risk management or logic. The smart people went to the private equity firms.

Buzz Saw said...

mammoth asks:

Any bets on how much longer these two will remain together?

Ha! That was my first thought. What time is it? Bwahaha!

Soup Nazi: "No soup for you!"

Anonymous said...

COPES!!!

Anonymous said...

And they've made cutbacks: trading in Kent's Corvette for a Suburban
------------------------------

for a Suburban????? how about a used ford escort? how about downsizing to one car?

They are going to hit that wall hard in march.

BananaRepulicrat said...

Wow, this is rich material:

"Mysti" = WT, stripper name

The editor missed the boat, the proper headline: "The Copes--can't!" LOL!

"Kent worked for several of the firms that helped give birth to the industry"

So it's Kent's fault. He is Suzanne's little track-suited, scumbag helper.

"We're still both in shock that it could go from something so good to so bad so quick,"

I'm sure many of your customers had a similar experience. You'll be even more shocked when nobody gives a damn.

"Today, they're trying to get by on his unemployment benefits of about $450 a week, which covers only about an eighth of the basic payments they owe every month."

I'm paying unemployment for these slugs? And it's $1800/month? AYFKM?

"cashed in her 401K," nice move Kent(I assume your money is tucked away in The Caymans.)

"Since he lost his job, Kent has gotten a real estate license and is trying to start a business selling the rapidly increasing inventory of foreclosed homes in Orange County, Calif. Mysti is trying to build an online business selling jewelry and beachwear, some of which she designs herself."

They are both "trying" to do something. It's one thing if you don't make much doing it, but if it's been a year and you're still "trying" it's probably time to try something else!

If you feel sorry for them, buy Mysti's stuff!
http://tinyurl.com/2gp875

BMW driving sex machine said...

These people are a typical example of the OC and the dulusional real estate industry scum that live there.

I've actually heard deulusional trophy wives from there refer to themselves as "OC royalty". They spend their lives jumping from marriage to marriage to maintain the standard of living they believe they are entitled too. They get their boobs inflated, botox'd till their face can't move, niptucks, dump their children on their exs, whatever to maintain their retail value when looking for rich husbands. They are no different than one of those hovel houses that gets fliped with a fresh coat of paint and fake mable floors.

100 dollars says the Viagra addict and Mysti are divorced within the year. She'll get a job as some secretary and start trolling the bars around Newport Beach for the next Porsche/Corvette driving Viagra addict midlife crisis victim looking for a bottle blonde to suck on his wrinkled nads.

Anonymous said...

I think Mysti should sue her hubby for sugar daddy fraud.

Russ DoGG said...

No sympathy. Better people than these shysters have been laid off by disruptions in manufacturing caused by NAFTA, China, or by disintermediation (i.e. travel agents). Computer science people have been outsourced from India.

These people don't produce or invent anything- they are a transaction cost. They suck off money from productive people looking to purchase homes. Little better than realtors. The term 'leeches' is appropriate here.

It's not possible to have sucha large part of the economy based on transaction costs arising from buying and selling each other homes (or commodities or tulips for that matter). A correction is needed and that correction involves them finding something useful to do.

Or maybe just going back to waiting tables & tending bars.

Open market economies innovate all the time, lowering transaction costs. Time to get an honest job.

Russ DoGG said...

Mysti definitely sounds like a stripper's name.

Oh- MAmmoth how'd you find their ages?

This definitely looks like an old man driving a corvette who hooks up with a stripper.

I always wondered where so many of these people got the money for suchy toys- despite having few apparent skills and not being very smart. Now Im beginning to understand how profitable predatory businesses (i.e. New Century & credit card companies) can be in the light-regulated industries of the USA.

Frank@OCsucks.com said...

Maybe they can move in with the first wife. You know the one Kent kicked to the curb when he decided he deserved to trade up for a younger model.

When I saw their names I thought there might be some hope for them but even thought the name is right Mysti just could not cut it as a stripper.

PS. Where's Frank? These are his neighbors. These are the people who make Frank believe that the OC is Galt's Gulch by the Sea. I guess Frank is to busy creating his OC Sucks.com web site.

Anonymous said...

She may still be able to get into porn and save herself but she will need to dump the fossil. He's dead weight for her new career.

Anonymous said...

Misty is a genius. She thought that the old geezer, 20-year her senior, was a big shot with his leased Corvette and zillion credit cards. Now the old geezer with no savings went through Misty's entire 401k and keeps digging. Nice catch, Misty!

Anonymous said...

All the intelligent Californian's realized that it was all a sham and happily cashed in their houses and left CA with their lottery winnings to buy an affordable home somewhere that is more connected to reality.

Thanks for the kind words. The only difference is that I continue to rent somewhere else in the US but bought something better overseas. California will suck you dry, while it becomes North Mexico.

Anonymous said...

everybody should "digg" that story!

Anonymous said...

Someone get the profile of these fools at Linkedin so we can continue to laugh.

Anonymous said...

Hey Misti-

I'll give you a job, Elliot Spitzer style, and I won't even make you change your name to "Kirstin".

If you act now, I will also employ your husband! He can make us a sandwhich, and do some light clean up duty....

Call me-
Jack

Anonymous said...

They failed financial planning 101. They put all their eggs in one basket and have expenses way beyond what they could maintain on one reasonable salary. If they have $10K in expenses, they should have had at least $60K in cash available. If they had any sense they should have put their house up for sale after the first month of failing to find a new job.

I have a friend in a similar situation -- small-time developer and can't sell any houses for more than the debt on them. Now, BK is probably the only way out -- yet he's living in a $3M mansion (his comp) on a lake, and is hesitating to sell it. Instead, he's selling everything else that's not nailed down. It's raining. Open the umbrella!

Geek said...

check it out
http://www.linkedin.com
/in/mystibeachcope

She went from being a retail store manager to being a VP of a mortgage company. Multiply her story by 10,000. Thats what they all were.

employment history
Past

* VP, Ecommerce Customer Service at New Century Mortgage Corporation
* Assistant Store Manager at Giorgio Armani
* KMG Department Manager & Certified Trainer at Harris' Department Store

RC said...

mammoth asks:

Any bets on how much longer these two will remain together?

Keith sould start a pool? I'am in for $20.

Anonymous said...

Hell, that dude is fifty-freakin nine, he should have enough to retire, let alone tide him over when he has only been out of work for 8 months. What the hell has he been doing with his money the last 39 years?

I am not sure if I will be able to retire by 59(I think I will)but I sure has s&^t will have more than 8 months reserves. I had that when I was 24.

Anonymous said...

She goes from Assistant Store Manager at Giorgio Armani

all the way to

VP, Ecommerce Customer Service at New Century Mortgage Corporation

Love it.

Solo said...

"Kent estimates the mountainside home in San Clemente, Calif., which they bought in 2005, is worth 20% less than it was a year ago. And in the current market, he said he's not sure he could sell it for even that amount."

Best line in the article...who is this loser to estimate what the "worth" of the house is...its ONLY worth what a real ready,able buyer is willing to pay right now..like today...like a LOT less than they paid in 2005.

Time for them to join the other record 28(!) million Americans on food stamps as reported in the news yesterday and storm the doors of the strained/depleted food banks of the nation.(also in the news)..

Is this a great country or what?

Solo said...

On a lighter note...had never eaten Ramen noodles in my life and have seen it referenced numerous times on these posts.So last week was in the supermarket with the wife and saw a prominent sale display of 10 packs for a dollar. Bought four chicken,two beef,two pork,one shrimp and one oriental.
Had the oriental last night..my first ever ramen culinary experience. Rather bland,tasteless...I'm told the chicken is the number favorite among the "good eaters" and REIC desperadoes, so that's next.LOL!

BMW driving sex machine said...

Anonymous said...
the hell has he been doing with his money the last 39 years?

Answer:
Dealing with the payouts from his first marriage (alimony, child support), and then spending the rest giving his new trophy wife the OC lifestyle she demanded. (Gated community house with ocean view, jewerly, designer clothes and hangbags, mercedez, 4 star vacations, best restaurants, parties to show off their bling to the other OC royalty).

I can imagine the reason Mysti can't work is because thousands of other trophy wives like herself are now trying to land jobs back at the stores and restaurants they worked before hooking up with their sugga daddies who are now broke. Include the thousands and thousands of unemployed realtors as well.
I bet being a single guy with money in the OC right now is like paradise.

Anonymous said...

I'm happy this is happening to them, & I hope they spread the word. Corvette? Gardener? $10,000 / month expenses? That is called living way beyond your means. Way beyond. Absolutely no savings cushion for emergencies. How about just savings for savings sake? That guy looks like he is over 50. Didd he ever plan to retire? I got news, jackasses, stocks don't always go up. What morons. I live in Newport Beach and see this all around me. I'm glad to see these people get slammed with some reality. Get new jobs; work for a living. BTW, trading in a Corvette for a Suburban was hardly enough. They should have gotten a used Honda with 150k miles on it.

Budvar said...

tangelo mozilo said...

I wonder if they have any savings . . .

I wonder if they have any siblings more like. These 2 morons should be the next poster child(ren) for the pro-Eugenics movement!!

Anonymous said...

sunny california...gotta luv it.

dept of educ sent out notice to 20,000 employees that layoffs may be in their future...... i wonder if those people, their families & friends might start cutting back a bit after getting the notice?.... the downward spiral continues.

BondsOfSteel said...

Dang! She became VP after 4 years in retail store management with a 2 year fashion degree.


Not to pick on fashion degrees... personally, I love fashion. But qualification a banking VP? OK... sure... 2 years at Armani is nice. (Assuming it wasn't A/X Exchange.) Still... VP... banking?

Heck, I wonder what I'm qualified for?

Anonymous said...

"...jewelry, beachwear, and real estate..."

PRICELESS

Anonymous said...

¡GiĆ³rgio Armani!

Anonymous said...

"It's very expensive to live in Orange County, and you pay a lot for your home and you can't get what it's worth now."

Parse that sentence again Kent. In fact you CAN sell your home for EXACTLY what it's worth. It's called mark to market. If you'd taken Finance 101 you might know that.

ocrenter said...

found their $1 million oceanview home

Anonymous said...

I was raised to believe living beyond your means is dangerous and even immoral. Seeing what's going on with these people and the subprime mortgage meltdown, I see my parents were right. I can't feel any compassion for greedy and stupid sheeple. They deserve what they got. Foreclose already, rent a basement, trade in the goddamn ugly gas-guzzling Suburban for a '90s Camry, eat ramen, there you go!


"It's very expensive to live in Orange County, and you pay a lot for your home and you can't get what it's worth now."

Negative. Your house was worth a lot less than what you paid for it in the first place! Hahaha!

(I don't believe in God, but if I believed, I'd say he's striking them for their greed and gluttony! BURN IN HELL!)

mairca izda debol said...

From a $10/hr retail store manager to a six figure salary is a bank VP in a couple of years. That reminds me of the Seinfeld episode where the lunatic is promoted from mailroom clerk to VP in two days. With clowns like that running the show, no wonder New Century went bankrupt. At least Enron had competent and smart thieves who used complex schemes to run their fraud from 1995-2001. These people are just buffoons who were lucky to ride the wave of fraud.

Anonymous said...

"Heck, I wonder what I'm qualified for?"

It depends on what you look like. If you look like her, you can be VP of anything you want.

Anonymous said...

I knew we could count on you OC Renter! Good stuff, as usual.

The OC said...

This is standard OC. The Irvine Co. (largest OC land owner/developer going back decades -- UC Irvine named after the family) -- has been developing all remaining open land at a furious pace these past several year. This is how it all works: Land deals/housing sales fuel OC's corrupt Republican politics. The amazing amount of property taxes collected each year has been paying county employee's pensions -- most notably Orange County Sheriff employees (OC Sheriff Mike Carona resigned 2 mos ago, facing multiple counts of corruption charges filed by the Feds). The Board of Supes always votes in favor of these massive entitlements, b/c they're afraid of law enforcement unions -- and have been playing their own ponzi game to fund these pensions with the real estate taxes. The Board of Supes are always on the take (Supervisor Norby now in the news for illegally using his campaign funds to pay for personal expenses -- i.e. hotel charges b/c his wife kicked him of the the house & he was homeless), along with the numerous city council members, getting donations from the Newport Coasters, attending campaign events at the McMansions. Can't get a cup of coffee in this corrupt shithole unless you're Republican. Republican Party of OC is one giant ant hole of corruption, and controls both the DA's office & Sheriff's Dept. These soon to be former homeowners (the 'Copes' -- LOL) are nothing new here - typical 'pigs in finery' rampant in places like Ladera Ranch & most especially, the white trash town of Aliso Viejo. Just so happens CNN picked up the story on this pair. The fact that the husband had his former home in Panorama City is perfect -- the reality is THAT is who he is. Panorama City is a blue collar, post WWII cracker box house town that's now gone all black/hispanic, along with most of the LA post WWII blue collar suburbs. They were faking out themselves and pretending to be something they really aren't. That's why they have no savings. They never had money to begin with. Same with SO many OCers. I'm a 3rd generation OCer -- so I remember this as an agricultural area -- that's why it was called "Orange County" -- all orange groves, agri & avocado. Now its one big mess of Republican corruption.

Anonymous said...

I would love to see a follow up story where things get so bad they end up renting back in Panorama driving a Pinto.

Anonymous said...

"Interested In:...
* getting back in touch *"

:^D

She's about to get a BIG DOSE of that, all right.

Anonymous said...

Jesus. $10,000 in debt maintenance a month, and the best they can do is fire the gardener, trade the penis-mobile for another, equally-expensive but less-efficient penis-mobile, and cash in the little lady's 401K?

Oh, but he's got a line on a sweet new RE scam, and she's selling her little "designs" on the internet (I swear, these "jewelry designers" are without fail fake-tit-having, golddigger bimbo suburban white trash who are just a bit too old to go back to stripping). What a couple of worthless, uneducated, greedy scumbags.

The best part is they *refuse* to make the real lifestyle cuts that would save their dumb asses. Their attitude of entitlement sickens me. Oh well... the bigger the pride, the greater the fall.

I'll pop up some popcorn...