Jump to content



Photo

DSL - got puts?


  • Please log in to reply
8 replies to this topic

#1 jawndissedi

jawndissedi

    Member

  • Traders-Talk User
  • 1,018 posts

Posted 22 January 2007 - 11:13 PM

"We have other credit risk elements within our real estate loans held for investment besides loans subject to negative amortization or loans with interest-only payments. At September 30, 2006, these other credit risks included:

89% of our real estate loans were concentrated and secured by properties located in California, principally in Los Angeles, San Diego, Orange, Santa Clara and Riverside counties; 79% of our residential one-to-four unit loans were underwritten based on borrower stated income and asset verification and an additional 10% were underwritten with no verification of either borrower income or assets; and loans that are relatively new and unseasoned, as 25% of our residential one-to-four unit loans were originated in 2006, with an additional 38% originated in 2005."


Form 10-Q

Okay, I admit I was a little chagrined to see Ohio and Kentucky take an early lead in the foreclosure derby, but -- now that I've had chance to peruse the above-referenced beauty -- I am totally confident in CA's ability to make a run for the roses.

BTW, Greenie, I appreciate the update on Calcutta, but honestly believe you guys are not in the same league with the Golden State when it comes to mindless, manic speculation.

P.S. FL, NV and AZ: eat your heart out.
Da nile is more than a river in Egypt.

#2 U.F.O.

U.F.O.

    U.F.O.

  • TT Patron+
  • 5,605 posts

Posted 22 January 2007 - 11:16 PM

Who is DOWNEY FINANCIAL CORP? A small third party lender? I just checked their financials. I could buy these guys and sell them into a white slavery ring! Why are you using them as some kind of convoluted example of the current state of the U.S. real estate market?

U.F.O.

Edited by U.F.O., 22 January 2007 - 11:22 PM.

"Democracy is two wolves and a lamb voting on what to have for lunch. Liberty is a well-armed lamb contesting the vote!"
~Benjamin Franklin~

#3 U.F.O.

U.F.O.

    U.F.O.

  • TT Patron+
  • 5,605 posts

Posted 22 January 2007 - 11:37 PM

Learn what it means to be a "sub-prime lender". Especially a small, third party, one. Their fate is not a true reflection of the total U.S. housing market.

U.F.O.
"Democracy is two wolves and a lamb voting on what to have for lunch. Liberty is a well-armed lamb contesting the vote!"
~Benjamin Franklin~

#4 jawndissedi

jawndissedi

    Member

  • Traders-Talk User
  • 1,018 posts

Posted 22 January 2007 - 11:41 PM

Who is DOWNEY FINANCIAL CORP? A small third party lender? I just checked their financials. I could buy these guys and sell them into a white slavery ring! Why are you using them as some kind of convoluted example of the current state of the U.S. real estate market?

U.F.O.


Downey Financial Corp. is the parent company of Downey Savings and Loan Association, F.A., with assets of $16.5 billion and 169 branches throughout California and four in Arizona.


Large enough to constitute a significant sample of mortgage lending in the world's seventh largest economy (CA).

You wouldn't, by any chance, happen to be a licensed realtwhore, would you?
Da nile is more than a river in Egypt.

#5 U.F.O.

U.F.O.

    U.F.O.

  • TT Patron+
  • 5,605 posts

Posted 22 January 2007 - 11:48 PM

LOL! Nada. I don't sell real estate. But I do a ton a business with actual players in CA like Countrywide. 16BB is a fart to wind like that. Exactly what was it in Downey's financials that drove you over the edge? U.F.O.
"Democracy is two wolves and a lamb voting on what to have for lunch. Liberty is a well-armed lamb contesting the vote!"
~Benjamin Franklin~

#6 jawndissedi

jawndissedi

    Member

  • Traders-Talk User
  • 1,018 posts

Posted 23 January 2007 - 12:00 AM

LOL! Nada. I don't sell real estate. But I do a ton a business with actual players in CA like Countrywide. 16BB is a fart to wind like that. Exactly what was it in Downey's financials that drove you over the edge?

U.F.O.

How about:

"During the current quarter, approximately 29% of loan interest income represented negative amortization, up from both 28% in the third quarter of 2006 and 21% in the year-ago fourth quarter."

So what kind of business are you doing with Countrywide -- helping them counsel recently laid-off employees or squirm out leases for closed branches?
Da nile is more than a river in Egypt.

#7 U.F.O.

U.F.O.

    U.F.O.

  • TT Patron+
  • 5,605 posts

Posted 23 January 2007 - 12:12 AM

You funny guy. I repeat my suggestion from the earlier post. Learn what a "sub-prime lender" is. Also, you might want to take a class on what "negative amortization" means. It doesn't mean "default". It means the borrowers principal balance rises for a period of time.(i.e. GNMA GPM's) Various types of loans are structured that way from the get-go. As far as what I do with big players like Countrywide? None-o-ya business. LOL! If they wanted to spill their business guts all over the web, my contacts there would post here and tell you. The market is very solvent and seems to be rebounding. No help from you, unfortunately.

U.F.O.

Edited by U.F.O., 23 January 2007 - 12:12 AM.

"Democracy is two wolves and a lamb voting on what to have for lunch. Liberty is a well-armed lamb contesting the vote!"
~Benjamin Franklin~

#8 greenie

greenie

    Member

  • Traders-Talk ~
  • 3,184 posts

Posted 23 January 2007 - 12:25 AM

UFO my man, welcome back to the board !! What's wrong bro' - telling us about the benefits of negative amortization loans with stated income?? Is that a buy or sell of (un)real estate sector? :D :D
It is not the doing that is difficult, but the knowing


It's the illiquidity, stupid !

#9 U.F.O.

U.F.O.

    U.F.O.

  • TT Patron+
  • 5,605 posts

Posted 23 January 2007 - 12:29 AM

Greenie, my man! Hola. No Bro. No real benefits or negatives to "negative am". It's a wash. But when someone posts that it's a sign that "The Sky Is Falling", I can't allow the ignorance to prevail. Great to see you again! U.F.O.
"Democracy is two wolves and a lamb voting on what to have for lunch. Liberty is a well-armed lamb contesting the vote!"
~Benjamin Franklin~