Bear, Lehman, Merrill, Goldman Traded as Junk, Derivatives Show

Q: What does Fred Sanford, Bear, Merril and Goldman have in common?
A: They are all now in the junk business.
I do not feel sorry for them because they are instrumental in creating this mortgage cluster_____. I can tell you that many suits at these institutions are going to needs lots of Ripple before this mess is cleaned up.




By Caroline Salas


The exterior of the New York Stock Exchange July 31 (Bloomberg) -- On Wall Street, Bear Stearns Cos., Lehman Brothers Holdings Inc., Merrill Lynch & Co. and Goldman Sachs Group Inc., are as good as junk.

Bonds of U.S. investment banks lost about $1.5 billion of their face value this month as the risk of owning the securities increased the most since at least October 2004, according to Merrill indexes. Prices of credit-default swaps based on the debt imply that their credit ratings are below investment grade, data compiled by Moody's Investors Service show.

The highest level of defaults in 10 years on subprime mortgages and a $33 billion pileup of unsold bonds and loans for funding acquisitions are driving investors away from debt of the New York-based securities firms. Concerns about credit quality may get worse because banks promised to provide $300 billion in debt for leveraged buyouts announced this year.

Rest of Story




Disclaimer:This is a personal web site, reflecting the opinions of its author. It is not a production of my employer, and it is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.

IndyMac Bancorp

Another Anatomy of a Collapse? Time will tell.






Disclaimer:This is a personal web site, reflecting the opinions of its author. It is not a production of my employer, and it is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.

Cramer Claims TOTAL CRISIS: Boooooooyah!

Didn't you claim there was no housing crisis just 5 months ago you idiot??





Here is the proof! BaBaBaBoooooyah! This guy gets to recommend stocks on primetime every night? Where is the SEC and the NASD when you need them?



Disclaimer:This is a personal web site, reflecting the opinions of its author. It is not a production of my employer, and it is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.

Mount Pleasant, SC a Foreclosure Bargain

There should be more coming as the lending bubble spreads. This is a great article from Realty Trac.

10 Bargain Beach Towns
Find that perfect vacation home thanks to a cooling housing market
By Joel Cone


June 22, 2007

The smell of the salt water. The feel of a cool ocean breeze. The sight of the marine layer hanging like a blanket overhead. The feel of the hot sand beneath your feet. And let's not forget . . . the view. All these amenities come included with a vacation home near the beach, a luxury that many dream of, but few think they can afford.

But bargain beach homes are available in many idyllic coastal communities, and bargains could become more common thanks to a cooling housing market. Although vacation home sales rose 4.7 percent last year, the median price dropped 2 percent, to $200,000, according to the 2006 National Association of Realtors Investment and Vacation Home Buyers Survey. And with foreclosures up 90 percent nationally in May on a yearly basis, according to RealtyTrac, more homeowners and lenders will be motivated to sell at discounted prices - even in vacation hot spots.

Here are the top 10 Bargain Beach Towns based on neighborhood data from www.neighborhoodscout.com and foreclosure sale data from www.realtytrac.com. These communities are potential treasure troves of great deals on wonderful vacation homes:


1. Clinton, Connecticut
Overlooking the Long Island Sound, Clinton is located in Middlesex County, 38 miles south of the state capital of Hartford, and equidistant from both New York City and Boston. The first seat of Yale University (called Collegiate School at the time), the town has more than 3,500 residents and 1,600 households counted in the 2000 Census.

Median home sales prices in the Hartford-West Hartford-East Hartford metro area were estimated to be $255,000 for the first quarter of 2007 by the NAR. The most recent homes sales data available from NAR for Middlesex County showed that 5,000 homes sold during the fourth quarter of 2006 (seasonably adjusted) at an average sales price of $335,100.

During the first quarter of 2007 RealtyTrac reported 30 foreclosed properties being sold in Middlesex County for a median price of just over $291,600 - an average savings of 17 percent below full market value. One recent search found 77 homes in some stage of the foreclosure process in Clinton.

2. Rocky Point, New York
Located on the north shore of Long Island in Suffolk County, N.Y., Rocky Point is a community in the town of Brookhaven. Home to almost 10,200 people and 3,950 households, Suffolk County had a median home price of $411,000 in April 2007, according to the New York State Association of Realtors.

A recent RealtyTrac search showed 118 properties in some stage of foreclosure in Rocky Point. In all, 512 foreclosed properties sold in Suffolk County during the first quarter of 2007 at an average sales price of slightly over $404,000 - a 16 percent discount below full market value.

3. Somers Point, New Jersey
Originally known as the Somerset Plantation, the city of Somers Point is the oldest settlement in Atlantic County. The city is seven miles southwest of Atlantic City and 60 miles east of Philadelphia. The 2000 Census recorded a population of more than 11,600 people living in 5,400 households.

According to the NAR, the median price of a home sold in southern New Jersey during Q1 2007 was $259,000. The median sales price on the south Jersey shore for the quarter was $254,700.

Atlantic County had 82 foreclosures sell during the first quarter, at an average sales price of $292,000 - 22 percent below full market value on average. Five properties were recently found to be in some stage of foreclosure in Somers Point on the RealtyTrac website.

4. Carolina Beach, North Carolina
Situated between the Cape Fear River and the Atlantic Ocean, the City of Carolina Beach is located 13 miles south of Wilmington and 133 miles southeast of Raleigh. Settled long before the Revolutionary War, the surrounding area is famous for its plantations and their gardens, as well as being infamous as a former base of operation for pirates.

The 2000 Census shows a population of 4,700 people with almost 4,100 households in Carolina Beach. Figures released by the North Carolina Association of Realtors® show a median home price of $287,154 for April 2007.

Carolina Beach recently showed nine properties in some stage of the foreclosure process on RealtyTrac. Overall 16 foreclosed properties sold in New Hanover County during the first quarter of 2007 for an average sales price of $238,700 - more than 37 percent below the full market value on average.

5. Mount Pleasant, South Carolina
Across the harbor from the city of Charleston sits the town of Mount Pleasant, South Carolina. The town has a population of approximately 47,600 and nearly 20,200 households.

Home sales numbers released by the South Carolina Association of Realtors show an average home sales price of $208,000 in the Charleston Trident MLS region for April 2007. A recent RealtyTrac search uncovered 54 properties in some stage of foreclosure in the town. For the first quarter 2007 there were 73 foreclosures sold in Charleston County at an average sales price of $360,700 - an average savings of 16 percent below full market value.

6. Melbourne Beach, Florida
Just named by U.S. News & World Report as one of the "10 Bargain Retirement Spots" in the country, Melbourne Beach is Brevard County's oldest beach community. Just 25 miles south of Cape Canaveral on a barrier island separating the Indian River from the Atlantic Ocean, and little over an hour's drive to Orlando, the town houses 3,335 people in almost 1,560 households.

The Florida Association of Realtors reported a median home price of $194,100 in the Melbourne-Titusville-Palm Bay metro area in April 2007. A recent search on RealtyTrac found 40 homes in foreclosure in Melbourne Beach. For the first quarter of the year, 146 foreclosures were sold in Brevard County at an average sales price of $224,300 - an average savings of more than 26 percent below full market value.

7. Englewood, Florida
On the west coast of Florida, along the Gulf of Mexico, sits the town of Englewood, a beachfront community on Lemon Bay in Sarasota County that is home to almost 16,200 people.

The Sarasota-Bradenton metro area had a median sales price of $294,800 in April 2007. A total of 43 foreclosed properties sold in Sarasota County during the first quarter of 2007 at an average price of $313,000 - an average savings of 35 percent below the full market value.

8. Oak Harbor, Washington
Named for its Garry Oak trees, Oak Harbor is the largest incorporated city on Whidbey Island, one of nine islands that make up Island County in Washington's Puget Sound. Comprising an area of nine square miles, the town has a population of about 20,000.

First quarter 2007 data collected by the Washington Center for Real Estate Research at Washington State University shows a median home price of $293,000 in Oak Harbor. RealtyTrac recently showed 41 properties in some stage of foreclosure in the town. Island County had nine foreclosures sell during the first quarter 2007 at an average sales price of almost $187,000 - 23 percent below full market value on average.

9. McKinleyville, California
Named for President William McKinley after his assassination, McKinleyville is a bedroom community located north of Eureka and Arcata. Sited on almost 21 square miles of northwestern California shoreline property in Humboldt County, the town has a population of about 13,600.

Real estate in McKinleyville ranges in price from around $250,000 to over $1 million. April 2007 statistics released by the Humboldt Association of Realtors show the median sales price for the region at $312,000 for the month. A recent search on RealtyTrac revealed 52 properties in some stage of foreclosure. In all, nine foreclosed properties were sold in Humboldt County during the first quarter of the year at an average sales price of nearly $286,000 - 22 percent below full market value on average.

10. Cambria, California
Midway between Los Angeles and San Francisco on U.S. Highway 1, and just six miles south of the legendary Hearst Castle, lies this quaint seaside artist colony with a population of more than 6,200.

For April 2007 the California Association of Realtors reported a median sales price of $607,140 for San Luis Obispo County. A total 39 foreclosed properties sold in San Luis Obispo County during the first quarter of the year at an average sales price of $442,000 - 18 percent below full market value on average. RealtyTrac recently showed 21 properties in some stage of the foreclosure process in Cambria.







Disclaimer:This is a personal web site, reflecting the opinions of its author. It is not a production of my employer, and it is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.

U.S. Foreclosure Market Report

REALTYTRAC U.S. FORECLOSURE MARKET REPORT™: FORECLOSURE ACTIVITY UP OVER 55 PERCENT IN FIRST HALF OF 2007


New “Unique Address” Measurement Shows More Than 573,000 Properties

in Some Stage of Foreclosure During First Six Months of 2007

IRVINE, Calif. – July 30, 2007 – RealtyTrac® (www.realtytrac.com), the leading online marketplace for foreclosure properties, today released its Midyear 2007 U.S. Foreclosure Market Report, which shows a total of 925,986 foreclosure filings — default notices, auction sale notices and bank repossessions — were reported on 573,397 properties nationwide during the first six months of the year, up more than 30 percent from the previous six-month period and up more than 55 percent from the first six months of 2006. The report also shows a foreclosure rate of one foreclosure filing for every 134 U.S. households for the first half of the year.


RealtyTrac publishes the largest and most comprehensive national database of foreclosure and bank-owned properties, with over 1 million properties from nearly 2,500 counties across the country, and is the foreclosure data provider to MSN Real Estate, Yahoo! Real Estate and The Wall Street Journal’s Real Estate Journal.


“Despite a slight drop in June, foreclosure activity shows no sign of slowing down,” noted James J. Saccacio, chief executive officer of RealtyTrac. “Based on the rate of foreclosure activity in the first half of 2007, we could easily surpass 2 million foreclosure filings by the end of the year, which would represent a year-over-year increase of over 65 percent.”

Nevada, Colorado, California post top foreclosure rates

Nevada posted the nation’s highest foreclosure rate, with one foreclosure filing for every 40 households during the first half of 2007. The state reported a total of 25,208 foreclosure filings on 14,687 properties, more than double the number of foreclosure filings reported in the previous six-month period and nearly triple the number reported in the first half of 2006.

Colorado reported one foreclosure filing for every 60 households during the first half of 2007, the nation’s second highest state foreclosure rate. The state reported a total of 34,287 foreclosure filings on 19,411 properties, a 15 percent increase from the previous six-month period and a 38 percent increase from the first six months of 2006.

With one foreclosure filing for every 69 households during the first half of 2007, California registered the nation’s third highest state foreclosure rate. The state reported a total of 189,560 foreclosure filings on 104,572 properties, up 122 percent from the previous six-month period and up 232 percent from the first half of 2006.

Other states with foreclosure rates among the top 10 included Michigan, Florida, Ohio, Georgia, Arizona, Connecticut and Indiana.

California, Florida, Texas, Ohio document largest foreclosure totals

California’s foreclosure filing total and unique property count were both highest among all the states in the first half of 2007. Florida reported the second highest totals, with 102,213 foreclosure filings on 64,250 properties. Florida’s foreclosure rate — one foreclosure filing for every 81 households — ranked fifth highest among all the states.

Texas reported 69,471 foreclosure filings in the first half of 2007 — the nation’s third highest foreclosure filing total. But the state’s unique property count of 41,592 came in fourth place behind Ohio’s 44,594. Ohio reported 60,728 total foreclosure filings, the fourth most of any state. Other states with foreclosure filing totals among the nation’s 10 highest were Michigan, Georgia, Illinois, Colorado, New Jersey and Arizona.

New “Unique Property” feature provides additional detail

The new “unique property” count is an addition to the RealtyTrac U.S. Foreclosure Market Report and presents the number of unique property addresses with some type of foreclosure action filed against them during the six-month period. This new metric counts a property only once, even if there were multiple foreclosure filings against the property during the report period. RealtyTrac will issue this count four times a year, including a mid-year and annual report.

“The addition of this metric to our foreclosure report was spurred by a data request for unique property addresses from the Federal Reserve Bank, which is using our data for market and risk analysis, and we believe it will serve as a valuable complement to the total foreclosure filing count that we have been including all along,” said Rick Sharga, RealtyTrac’s vice president of marketing. “It’s interesting to note that the total foreclosure filings and unique property counts reveal almost identical trends on the national level: foreclosure filings are up 39 percent from the previous six months and 56 percent from the first half of 2006; unique property counts are up 32 percent from the previous six months and up 58 percent from the first half of 2006.”

The consistency is similar at the state level, where the same five states have the highest numbers of households in foreclosure and foreclosure filings, and the same six states have the highest percentages of both foreclosure filings per household and percentage of households in the foreclosure process. “The bottom line,” Sharga noted, “is that no matter how you count — by individual households or by the total number of foreclosure filings — foreclosure activity is up significantly in 2007. We hope that by providing both the total amount of foreclosure activity and the number of households involved, we’re providing information that legislators, regulators, lenders, homebuyers and sellers can use to make intelligent and informed decisions.”

Report methodology

The RealtyTrac U.S. Foreclosure Market Report provides the total number of foreclosure filings nationwide and by state, along with the number of households per foreclosure filing. The household numbers are based on the U.S. Census Bureau’s 2005 estimates of total housing units.

Beginning with the Midyear 2007 report, the report also includes counts of unique addresses in some stage of foreclosure. This new metric only counts a property once, even if there were multiple foreclosure actions filed against the property during the time period covered by the report.

Data is also available at the individual county level. RealtyTrac’s report includes documents filed in all three phases of foreclosure: Default — Notice of Default (NOD) and Lis Pendens (LIS); Auction — Notice of Trustee Sale and Notice of Foreclosure Sale (NTS and NFS); and Real Estate Owned, or REO properties (that have been foreclosed on and repurchased by a bank).


About RealtyTrac Inc.

Ranked as the third largest real estate site by MediaMetrix and No. 53 on Inc. magazine’s 2006 Inc. 500 list of the nation’s fastest-growing private companies, RealtyTrac Inc. (www.realtytrac.com), is the leading online marketplace for foreclosure properties, providing all the resources that home seekers, investors and real estate agents need to locate, evaluate and buy properties below market value.



Founded in 1996, RealtyTrac publishes the largest and most comprehensive national database of pre-foreclosure, foreclosure, For Sale By Owner, resale and new homes, with more than 1 million properties across the country, property reports, productivity tools and extensive professional resources. RealtyTrac hosts nearly 3 million unique visitors monthly and has been chosen to supply foreclosure data to MSN Real Estate, Yahoo! Real Estate and The Wall Street Journal’s Real Estate Journal. For current news and information regarding foreclosure-related issues and trends, visit our blog at www.ForeclosurePulse.com.


Disclaimer:This is a personal web site, reflecting the opinions of its author. It is not a production of my employer, and it is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.

American Home Mortgage

It should be an interesting week for AHM.




American Home Mortgage says faces margin calls


By Dan Wilchins
REUTERS

1:17 p.m. July 29, 2007

NEW YORK – American Home Mortgage Investment Corp. said its banks are demanding it put up more cash after the mortgage lender wrote down the value of its loan and security portfolios significantly.
The company said in a statement released late Friday that as a result of the margin calls from lenders, it has delayed paying dividends on its common stock, and plans to delay payments on its preferred shares.

The margin calls could create big difficulty for American Home Mortgage, which relies on short-term bank financing to temporarily fund home loans it makes.

Rising mortgage rates and defaults have hurt mortgage lenders this year. More than 50 lenders have filed for bankruptcy or sold themselves. The hardest hit lenders focused on borrowers with weaker credit ratings than American Home Mortgage's average borrower.

If American Home Mortgage does not have cash on hand to meet its banks' demands, it may have to sell assets, find new financing, or restructure its debt. If it were unable to satisfy its lenders, in the worst-case scenario it would have to file for bankruptcy.

On July 19, rumors that a bank had withdrawn one of American Home Mortgage's credit facilities pushed the company's shares 20 percent lower. American Home Mortgage told analysts that rumor was false.

American Home Mortgage had $4.01 billion of borrowings outstanding under its warehouse lines of credit as of March 31, and total liabilities of $19.3 billion, according to its regular first-quarter filing with regulators. The company's assets had a total book value of $20.553 billion.

American Home Mortgage focused on prime and “near prime” borrowers, which had higher credit ratings than the subprime borrowers whose default levels have jumped.

But many of American Home Mortgage's customers provided little documentation, creating more risk for the company.


QUARTERLY LOSS EXPECTED

The company said in late June that it would likely post a second-quarter loss after suffering credit losses from a type of loan it stopped making. It withdrew its earnings outlook for 2007, but said it expected losses to be contained.

The company also said it sold $125 million of convertible securities to Marathon Asset Management LLC.

American Home Mortgage relies on short-term financing from banks to fund mortgage loans, and then bundles those loans into bonds it sells to investors. Proceeds from the bond sales pay back the banks, allowing the company to make new mortgage loans.

American Home Mortgage's shares closed on Friday at $10.47, their lowest level since April 2003.

Melville, New York-based American Home Mortgage said delaying paying dividends will allow the company to keep cash on hand until it better understands the impact of market conditions on its balance sheet and liquidity.

(Reporting by Dan Wilchins)




Disclaimer:This is a personal web site, reflecting the opinions of its author. It is not a production of my employer, and it is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.

National builders put some projects on hold, remain committed to Charleston

The National Home Builders have problems. They are in the business to build homes and that is really all they do. These are not very diversified public companies which is why their stocks have been pounded during the real estate downturn. It will be interesting to see how some of them deal with the real estate market over the next 2-3 years.

National builders put some projects on hold, remain committed to area
By Kathleen Dayton
Staff Writer


Home sales are still sluggish in much of the tri-county area, but most national builders with a stake in the Lowcountry say they aren’t going anywhere. While a few projects are on hold, new developments continue to move forward, especially in lower price points in Berkeley and Dorchester counties.



“We’ve had a better year than anybody expected,” said Tim Pittman, spokesman for the Southeast division of KB Home. “We’re not building $800,000 homes, so our world is a little different. There’s a lot of activity in the North Charleston region. Google is coming and all the homebuilders are interested in what that means.”

Rest of Story

Disclaimer:This is a personal web site, reflecting the opinions of its author. It is not a production of my employer, and it is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.

Google

Hello Berkeley County!



Disclaimer:This is a personal web site, reflecting the opinions of its author. It is not a production of my employer, and it is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.

DOW Top 20 % Losses

Yesterday's 300+ point loss did NOT make the list. Defense is on the field and lets see how it plays out. Do not panic! Risk Management is key if you know what I mean and hopefully you do if you play the stock market.






Disclaimer:This is a personal web site, reflecting the opinions of its author. It is not a production of my employer, and it is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.

Da Bears Have Arrived

Folks, I just do not see how the American consumer can continue to carry this market.





Disclaimer:This is a personal web site, reflecting the opinions of its author. It is not a production of my employer, and it is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.

Leverage Can Be A Killer!

Bil Gross - aka Bond Daddy
"Both borrowers and lenders may have bitten off more than they can chew, and even those that swallow their hot dogs whole – Nathan’s Famous Coney Island style – are having a serious bout of indigestion. Several hundred billion dollars of bank loans and high yield debt wait in the wings to take out the private equity and leveraged buyout deals that have helped propel stocks to Dow 14,000. And lenders…mmmmm, how do we say this…don’t seem to have much of an appetite anymore. Six weeks ago the high yield debt market was humming the Campbell’s soup theme and now, it’s begging for a truckload of Rolaids."








Disclaimer:This is a personal web site, reflecting the opinions of its author. It is not a production of my employer, and it is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities,

Cartoon Friday

Disclaimer:This is a personal web site, reflecting the opinions of its author. It is not a production of my employer, and it is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.

Headlines

Disclaimer:This is a personal web site, reflecting the opinions of its author. It is not a production of my employer, and it is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.

Charleston on the Today Show

Charleston has had a bunch of press lately. The Demopublicans had their You Tube Debate at The Citadel Monday night. Then our fearless leader, George W. Bush, who is apparently posessed by Al Queda was here yesterday. Whether the Demopublicans or Republicrats come to town makes no difference to me because they are all full of shit. They have both been in power over 50 years and neither have not gotten a damn thing done except increasing our county's debt. Think about it. If our country were run like a real business we would have had to file Chapter 11 thousands of times over by now. What a bunch of clowns!

Here is a good video of Charleston that was recently on the The Today Show.

Check it out!!!



Disclaimer:This is a personal web site, reflecting the opinions of its author. It is not a production of my employer, and it is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.

Housing Containment?? Yeah Right

Awesome stuff from Minyanville and Mr. Depew.

1. Ghost in the Machine Slowly Grinding to a Halt

The market for collateralized debt obligations is slowly grinding to a halt, according to Bloomberg, threatening one of Wall Street's sacred cash cows - (read: $8.6 billion in annual underwriting fees) - and reducing the availability of credit for everyone from major Wall Street buyout firms to homeowners themselves.



* Sales of collateralized debt obligations (CDOs), which are used to pool bonds, loans and their derivatives into new debt, fell to $9.1 billion in July, down from $42 billion in June, analysts at JPMorgan Chase (JPM) said, according to Bloomberg.
* What's behind the declining appetite for CDOs?
* The near collapse of two Bear Stearns (BSC) hedge funds, for one. The downgrade of 75 CDOs by the ratings agency S&P, for two. And concern about growing losses due to rising homeowner mortgage defaults, for three. Those are just for starters.
* Ok, so what are we really talking about here with these so-called CDOs?
CDOs were created in 1987 by bankers at Drexel Burnham Lambert.
* Wait a minute.
* Did you say Drexel Burnham Lambert?
* Isn't that the same firm that was driven into bankruptcy in 1990 due to illegal trading in junk bonds driven by Drexel employee Michael Milken?
* And did you say they were created in 1987?
* The same year the market crashed?
* And wasn't the 1980s known as the "Decade of Greed"?
* Yes, yes, yes and yes.
* So let's see if we got this right.
* Today, in 2007, the market for securities that were created in the "Decade of Greed" by a firm that was only a short time later forced into bankruptcy due to illegal trading in high-risk bonds is grinding to a halt?

2. Housing Slump Contained to Only Those Things Affected by Housing Slump

Countrywide Financial (CFC), the biggest U.S. mortgage lender, reported its third straight decline in quarterly profit due to increases in late loan payments.



* Countrywide this morning reported that second-quarter net income fell 33% and revenue fell 15%.
* The company also reduced its forecast for earnings for this year.
* Why the grim forecast?
* The company said profit was hurt by impairment charges on securities backed by
prime home-equity loans.
* Well, of course, they said that. This sub-prime mess is going to continue to hurt for awhile. Even Bernanke said so last week.
* No, sorry. Read that bullet point again: The company said profit was hurt by impairment charges on securities backed by prime home-equity loans.
* Countrywide Chairman and Chief Executive Angelo Mozilo said "delinquencies and defaults continued to rise across all mortgage product categories."
* The company also noted it has set aside $293 million for loan losses in the quarter, more than triple the level a year earlier, blaming a loan-loss provision of $181 million on prime home-equity loans, the Wall Street Journal said.

3. Jai Guru Containment

Contained. Contained. Contained. It's out there like a new mantra. But where does it come from? Is it herding behavior? Or perhaps it's an organized propoganda campaign from a group we'll call the Containers. Whatever it is, it's really starting to freak us out a little bit.


* Look at it! Here's the word from the Containers... and this is just in the past 30 days.
- Lehman Brothers Holdings Chief Financial Officer Christopher O'Meara told investors on a June 12 conference call that "we continue to believe that subprime market challenges are and will continue to be reasonably CONTAINED." - Charlotte Observer, Bloomberg News, July 24, 2007


- The U.S. Treasury Department Friday said the recent woes in the subprime mortgage market appear to be CONTAINED. - Reuters, July 20, 2007


- Fed's Poole: "Subprime woes look CONTAINED." - Yahoo News, Reuters, July 20, 2007


- "The subprime problem appears to be CONTAINED,'' said Richard Franulovich, a senior currency strategist at Westpac Banking Corp. in New York. - Bloomberg, July 17, 2007


- Chicago Fed study sees subprime woes CONTAINED. - Reuters, June 28, 2007


- Freddie Mac says subprime rout "severe but CONTAINED." - Bloomberg, June 26, 2007







Disclaimer:This is a personal web site, reflecting the opinions of its author. It is not a production of my employer, and it is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.

The 100 Year Flood? Ouch!

Hey I did not write this story so do not come down hard on me. Unfortunately, it is reality right now for condo/townhomes in the Tri-County area.

Charleston area awash with condos for sale

By Katy Stech
The Post and Courier
Monday, July 23, 2007

Wade Spees
The Post and Courier

Dorothy O'Mara's condominium in the Montclair development in Mount Pleasant has been for sale for more than a year. The number of condos on the market in the Charleston area has nearly quadrupled over the past two years.

Weeks before Dorothy O'Mara put her Mount Pleasant condominium up for sale, the unit next door found a buyer in a mere four days.

More than a year later, O'Mara's unit is still on the market.

The housing slowdown has crept into her neighborhood in the Montclair condo and townhouse development, where one in every six properties is up for sale. While her two-bedroom, 2 1/2-bathroom end unit has one of the lowest price tags at $175,000, it has been a struggle to attract buyers.

"It's been kind of an impossible situation," said O'Mara, who wants to move closer to her daughter in West Ashley.

Rest of Story




Disclaimer:This is a personal web site, reflecting the opinions of its author. It is not a production of my employer, and it is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.

Cartoon Friday!!

Disclaimer:This is a personal web site, reflecting the opinions of its author. It is not a production of my employer, and it is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.

What is the Best Type of Mortgage?

The question is often asked which type of mortgage is the best type for the MMA program. In other words, will one type pay off faster than another?

First of all, I would like to start off by saying that the MMA works with all types of mortgages. Whether you have an interest only, fully amortized, negative amortized or an ARM, they all have the possibility of getting paid off. But if an individual is able to pay a fully amortized 30-year mortgage payment, yet decides to get an interest-only mortgage, as long as the savings from the difference between the fully amortized payment and interest-only payment is left in the HELOC, the interest-only mortgage will usually pay off quicker, resulting in greater savings. However, these savings are not generally great enough to merit a refinance because of the closing costs involved, which offsets the savings. But if an individual is in the process of refinancing anyways, or are in the process of moving, they may want to consider getting an interest-only loan. Remember, this is true only if the client has enough money for a fully amortized loan, but decides to leave the difference in the HELOC, bringing the balance down faster, resulting in a transfer more often, resulting in lower monthly payments on the 1st mortgage, thus freeing up more money to pay down the HELOC faster, resulting in a transfer more often, etc.

Remember that if you are not a qualified home loan consultant, you should not be giving your clients loan advice. This information is for your own personal education only.

Aaron Chapman
Countrywide Home Loans



Disclaimer:This is a personal web site, reflecting the opinions of its author. It is not a production of my employer, and it is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.

Sector Rotation in a Market on Defense

We are witnessing a very unique action in the stock market right now. The NYSE Bullish Percent recently reversed into a column of Os and the "defense is on the field" and risk is high with respect to this reliable major market inidicator. Meanwhile the in 2007 the Dow has managed a new all-time high in 6 out of seven 7 months, which isn't a bad on-base percentage.




What we are witnessing is a market where sector rotation is key and it is important to weed out the weak Relative Strength stocks and sectors from your portfolio at this point in time.

From Dorsey Wright:
"We often get the question, “How can the Dow go to new highs, while the NYSE Bullish Percent is on Defense?’ And while the answer is quite logical, it doesn’t necessarily make it easy to grasp. Very simply, the Dow is a “price-weighted” index, giving higher priced stocks more “votes” in terms of what the Dow will do. The strong performance of a few can wipe out the weak performance of the many … so long as the right stocks are going up. It doesn’t hurt that the top 5 priced stocks in the Dow are up, on average, 17% this year. In fact, none of those top 5 stocks has failed to rally in excess of 10% this year. Meanwhile, the 5 lowest priced stocks are up only 7.5% on average; with 3 of those 5 actually down on the year."

"While the generals may still be fighting the battle, the soldiers are leaving the field. On the day the Dow gained more then 280 points, the NYSE Bullish Percent rose a mere .5%, nowhere near a reversal up to X’s at 74%."



Disclaimer:This is a personal web site, reflecting the opinions of its author. It is not a production of my employer, and it is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.

Commercial Real Estate Getting Shaky?

This could really get ugly. If commercial loans start going bad there are gonna be a bunch of institutions imploding. I will touch on the commercial real estate side of the biz in a later post.

Fitch Sees Rising Shakiness In Commercial Mortgage Arena
By RYAN CHITTUM and JENNIFER S. FORSYTH
Wall Street Journal July 12, 2007

Defaults on loans backing commercial mortgage-backed securities could soon begin to rise, as some owners of buildings purchased for high prices find they were too optimistic about future market conditions, a credit-rating company warned.

In a report yesterday, Fitch Ratings said the fervid lending conditions from 2005 until early this year allowed landlords and real-estate developers to load up on interest-only loans and loans with high loan-to-value ratios that were underwritten with expectations for rent increases that appear "unrealistic." While commercial rents are rising at the fastest levels in many years -- especially in some of the strongest commercial markets, including New York and Washington -- Fitch said owners have "overly optimistic expectations of future rental rates, sales growth and market growth."

The warning comes as investors have become more cautious about financing these deals. In the last three months, lenders have pulled back somewhat, tightened covenants and required borrowers to put up more cash. Meanwhile, interest rates have risen, making it harder to use borrowed money to amplify returns. "It's clearly had an effect on the number of people chasing deals," said Colin Dyer, chief executive of Jones Lang LaSalle Inc., a Chicago commercial real-estate services company. "It's taking deals longer to get completed, and it's stopped price growth for now."

As investing in commercial real estate has surged this decade and sales prices have skyrocketed, lenders competed aggressively to win market share. Some loans used so-called negative leverage -- when a buyer's debt payment is more than the income the property produces. In the past, banks underwrote loans based on current cash flow -- typically the rents landlords receive from tenants. As the market heated up and banks competed against each other to produce loans, some began underwriting loans based on expected future income levels.

Even though lenders have turned skittish in recent months and have started to require more equity in transactions, the higher risk loans that were written previously are now working their way into pools of loans packaged into commercial mortgage-back securities -- thus, raising the likelihood of higher defaults for the rest of 2007, said Fitch.

Some of these riskier loans, especially in the white-hot Manhattan office market had been based on the current pace of rent increases-about 25% in the past 12 months in Manhattan -- continuing for 10 years or more. "It was not just one bank doing this," Britt Johnson, a senior director at the ratings agency and a co-author of the report. "It was a common practice across originators."

That kind of aggressiveness, combined with the fact that CMBS default rates are at historic lows, led Fitch to predict the default rate will rise this year for the first time since 2003. The current default rate is 7.88% for CMBS issued in the last 10 years.

"If you look at historic levels of delinquency compared to today -- they're so low by any measure that it's only natural to conclude that there's likely to be an increase," said Tom MacManus, who heads the debt and equity group for Cushman & Wakefield Inc., a New York commercial real-estate services company




Disclaimer:This is a personal web site, reflecting the opinions of its author. It is not a production of my employer, and it is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.

July 2007 Commentary - The Charleston Market Report

The Charleston Market Report


July 12, 2007

Well the pollen arrived, the flowers bloomed and the spring/summer real estate market continues to suck wind in Charleston and most places around the country. I know many real estate agents got excited when their phone started ringing all the sudden and then things got suddenly quiet again. This is why I do not use the Realtor Phone Ringing Index in my reports....it just is not accurate.

Below is a report I received from John Burns Real Estate Consulting. These guys do great analytical work on the US residential real estate market and I always like to read what they have to say. The most recent report received I found interesting because it deals with home prices. I have been very outspoken that many homes in Charleston are not priced correctly for the current real estate market conditions. Understanding how to measure trends in the market can be difficult at times and this is often reflected in the existing listings and their prices. Psssst.....many are still too high.

Folks, if your house has been sitting on the market for months and nobody is calling it is NOT priced correctly! Hellllllllo! I know what you think it is worth but that is not how the real estate market works. It takes two parties to come to an agreement on the price not just the seller or buyer. I also feel many real estate agents and their sellers do not understand how to price homes in this existing market. Heck, some Realtors do not even know how to measure a house so how do they come up with an estimated home value if they do not know the actual total square footage of the home?? Just curious. :)

Oh and by the way...just because you have an appraisal in hand that says the ESTIMATED HOME VALUE = ___________ does not mean that is what the house will sell for on the market. I love it when the real estate agents use this so vigorously in their marketing campaign. Again, the appraisal is one person's opinion. The appraisal also may not be worth the type of paper you find in the bathroom because the appraiser does not accurately measure the market and uses poors comps and/or adjustments in the report. Oh trust me, I have seen some doozie appraisals where the appraiser needs to find a new line of work ASAP. BTW, if any of you guys or gals are out there and need to get out of the appraisal industry call me and I will tell you how much nicer it is on the other side of the fence! Creating paper home widgets gets really boring after a while if you know what I mean.

So Chucktown made the John Burns list for a price drop. This should not be surprising with some of the inventory and lending issues at hand right now. Again, keep in mind that some areas are still doing very well here (Just call a Kiawah Realtor for example) so we do not want to paint the picture that all of Charleston is bad. I believe the homes and areas that experience falling prices can place most of their blame on the reckless lending industry. Any lenders that want to complain about my comments on your beloved industry can call my boss....me. Yes, it was not to long ago that everybody AND anybody could get a loan. I mean if you had a heartbeat you could get a loan not to long ago. What a joke! Oh but how times are a changing!

I swear I saw this house below in Mount Pleasant the other day. :)



***Please read conclusions for buyers below to get some good insight about buying a home if you are looking right now.

Ciao

Resale Home Prices Are Likely to Fall in Many Markets
We calculated how much prices would have to fall for housing costs (including mortgage payments, property taxes and down payments) to return to each market's typical ratio of housing costs / income. We identified 10 markets where prices will have to fall 30% or more to return to its normal ratio, and another 31 markets that are clearly overpriced. The most likely scenario in these markets is that resale prices will fall, but not as much as we calculated, unless something terrible happens like mortgage rates spike or the economy enters a prolonged recession. Nonetheless, here are our calculations, with a commentary that follows:

Housing Cycle Current Required Price Change
Metro Area Barometer Price % $
Miami, FL 8.5 $350,000 -41.4% -$145,000
Riverside-San Bernardino, CA 9.3 $390,000 -41.0% -$160,000
Los Angeles, CA 9.8 $570,000 -39.5% -$225,000
Baltimore, MD 9.6 $284,858 -37.2% -$105,858
Orange County, CA 9.4 $720,000 -34.0% -$245,000
Washington D.C., DC-VA-MD-WV 8.8 $404,517 -33.3% -$134,517
Las Vegas, NV 7.4 $305,975 -33.0% -$100,975
Seattle, WA 10.0 $415,000 -31.9% -$132,500
Portland, OR-WA 9.4 $280,000 -31.4% -$88,000
Oakland, CA 8.8 $635,500 -30.0% -$190,500
Sacramento, CA 8.1 $375,000 -29.3% -$110,000
San Diego, CA 8.5 $565,000 -29.2% -$165,000
Orlando, FL 7.1 $245,000 -28.6% -$70,000
Phoenix, AZ 6.7 $263,000 -24.0% -$63,000
Baton Rouge, LA 6.2 $179,306 -22.5% -$40,306
Fort Myers, FL 6.5 $255,000 -22.4% -$57,000
Myrtle Beach, SC 6.4 $207,816 -20.6% -$42,816
Tucson, AZ 6.4 $230,000 -20.4% -$47,000
Boise City, ID 5.9 $213,498 -20.4% -$43,498
Virginia Beach, VA-NC 7.1 $235,034 -20.0% -$47,034
Tampa, FL 6.2 $190,000 -18.4% -$35,000
Minneapolis, MN-WI 6.2 $234,000 -15.0% -$35,000
New York, NY-NJ 7.1 $500,282 -13.0% -$65,282
Jacksonville, FL 5.7 $187,000 -11.2% -$21,000
Salt Lake City, UT 5.4 $233,013 -9.9% -$23,013
St. Louis, MO-IL 5.8 $166,250 -9.8% -$16,250
San Antonio, TX 5.3 $145,700 -9.4% -$13,700
Edison, NJ 6.4 $359,676 -8.5% -$30,676
Chicago, IL 5.9 $250,000 -8.0% -$20,000
Denver, CO 5.7 $237,950 -8.0% -$18,950
Austin, TX 5.3 $181,900 -6.5% -$11,900
Richmond, VA 5.4 $210,000 -6.2% -$13,000
Charleston, SC 5.2 $200,000 -5.0% -$10,000
Dallas, TX 5.2 $167,800 -4.6% -$7,800
Newark-Union, NJ-PA 5.5 $439,197 -4.4% -$19,197
Fort Worth, TX 5.2 $117,100 -4.4% -$5,100
Houston, TX 5.2 $148,700 -3.8% -$5,700
Nashville, TN 5.1 $155,000 -1.9% -$3,000
Kansas City, MO-KS 5.1 $154,485 -1.6% -$2,485
Birmingham, AL 5.1 $165,661 -1.6% -$2,661
Philadelphia, PA 5.1 $220,788 -1.3% -$2,788
McAllen, TX 5.0 $110,700 N/A N/A
Columbia, SC 4.7 $126,500 N/A N/A
Memphis, TN-MS-AR 4.0 $144,521 N/A N/A
Raleigh-Cary, NC 3.7 $189,000 N/A N/A
Atlanta, GA 3.7 $170,110 N/A N/A
Charlotte, NC-SC 3.0 $167,250 N/A N/A
Cincinnati, OH-KY-IN 1.4 $144,000 N/A N/A
Columbus, OH 1.2 $131,700 N/A N/A
Indianapolis, IN 0.8 $119,200 N/A N/A


Why So Many Markets: Many markets around the country have tremendous affordability problems that are primarily the residual effect of falling mortgage rates from 1999 through early 2004. Adjustable-rate loans fell from 7.0% to 3.4% during that time, which allowed home prices to double without increasing the mortgage payment.

Why So Much in Some Markets: The markets that have the worst affordability problems tend to be where speculative investor activity drove prices up 200% or more during this time period. Some speculators made a lot of money, and others are in the process of losing it all. Speculative investing is certainly a risky business.

Why So Little in Other Markets: The 9 markets that appear underpriced are largely concentrated in the Midwest, Carolinas and Georgia, where appreciation did not spin out of control during the upswing of this housing cycle. Poor economic conditions or few barriers to entry generally kept price appreciation down in these markets. These markets are just as impacted as the others by the rising mortgage rates since 2004 and the subprime market meltdown.

Attacking The Supply Constraint Myth: We agree that many "overpriced" markets become permanently more expensive every year because of their desirability as a place to live and their supply constraints, so it is unreasonable to suggest that they will return to their long-term housing cost ratios. Miami, Los Angeles, Orange County, Seattle and Portland would certainly be considered among these markets. This doesn't mean these markets are insulated from corrections, however. Historically, supply-constrained markets such as Boston and New York have had very severe corrections during housing downturns. If these supply-constrained markets just return to the prices of early 2005, a steep correction is coming.



Attacking The Unprecedented Price Decline Myth: We agree that a 25% or more decline in resale home prices is unlikely, especially if interest rates don't change much and the economy continues to grow. Helping matters is the fact that household incomes increase every year. However, a significant price correction is not entirely out of the question in the many markets where the following two statements are true:

New home builders have already dropped prices (including incentives) 20% below where they would have been selling these homes two years ago, and


A 20% decline in price would only be a return to the prices of early 2005.

Attacking the Demographic Myth: We fully understand how phenomenal the demographics are for homeownership. However, this is a long-term trend. Over the short-term, we moved more renters into homeownership than usual because of the low interest rates and easy mortgage qualifying. The chart of homeownership by age shows just how high homeownership is among younger households.





Conclusions for Builders: If you are a home builder, you know you are an incredible value in comparison to several years ago. Before resale prices drop, sell a lot of homes now.

Conclusions for Consumers: If you are hoping to buy a home soon, compare the value of new homes to resale homes. Home builders cannot afford to have their homes sit on the market for months like most homeowners can. Builders, and particularly the largest builders, have been aggressively improving the value of their homes to sell them. Reduced prices, along with 6-7% fixed mortgage rates, might be a buying opportunity you may never see again.

--------------------------------------------------------------------------------

Methodology: To show where the problems are greatest, we reverse-engineered our Housing Cycle Barometer™ measure of affordability to estimate the magnitude that median resale prices would need to correct to return to historical median affordability levels. Our barometer compares each market's current ratio of housing costs / income to its own history to determine whether a market is overpriced. It is also the only measure we know that includes a factor for down payments.


The Q2 2007 report will be ready soon. There is much to discuss. One of the main topics is going to be the current trend of interest rates.

Have a great month everyone!



Disclaimer:This is a personal web site, reflecting the opinions of its author. It is not a production of my employer, and it is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.

Funny Housing Videos

Borat Looks to Buy A House


Hoofy & Boo's News & Views - Housing Forecast


What an IDIOT!!!! Boooooyah!




Disclaimer:This is a personal web site, reflecting the opinions of its author. It is not a production of my employer, and it is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.

I AM BORED VIDEO SATURDAY because it is raining in Charleston

Our Gov't is Run by Baboons!


Right NOW Baby!


Goodbye Housing Bubble


A Brilliant Housing Market Timer in Cali




Disclaimer:This is a personal web site, reflecting the opinions of its author. It is not a production of my employer, and it is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.

Foreclosure Activity - June 2007

FORECLOSURE ACTIVITY DECREASES 7 PERCENT IN JUNE

ACCORDING TO REALTYTRAC™ U.S. FORECLOSURE MARKET REPORT


Foreclosure Filings Still Up 87 Percent From June 2006


IRVINE, Calif. – July 12, 2007 – RealtyTrac® (www.realtytrac.com), the leading online marketplace for foreclosure properties, today released its June 2007 U.S. Foreclosure Market Report, which shows a total of 164,644 foreclosure filings — default notices, auction sale notices and bank repossessions — were reported during the month, down 7 percent from the previous month but still up 87 percent from June 2006. The report also shows a national foreclosure rate of one foreclosure filing for every 704 U.S. households for the month.

RealtyTrac publishes the largest and most comprehensive national database of foreclosure and bank-owned properties, with over 1 million properties from nearly 2,500 counties across the country, and is the foreclosure data provider to MSN Real Estate, Yahoo! Real Estate and The Wall Street Journal’s Real Estate Journal.

“Foreclosure activity subsided somewhat in June after hitting a 30-month high in May,” said James J. Saccacio, chief executive officer of RealtyTrac. “And the drop in activity was fairly broad, with 33 states reporting month-over-month decreases. Still, the foreclosure rates in most states remained substantially above last year’s levels.”

Nevada, California, Colorado post top foreclosure rates

With one foreclosure filing for every 175 households in June, Nevada documented a foreclosure rate more than four times the national average and highest among the states for the sixth month in a row. The state reported 4,722 foreclosure filings during the month, a decrease of 10 percent from the previous month but more than three times the number reported in June 2006.

Despite a 2 percent month-over-month dip in foreclosure activity, California registered the nation’s second highest state foreclosure rate, one foreclosure filing for every 315 households — up from third highest the previous month and 2.2 times the national average. The state reported 38,801 foreclosure filings during the month, the most of any state for the sixth month in a row and more than three times the number reported in June 2006.

Colorado’s foreclosure rate dropped from second highest to third highest thanks in part to a 10 percent month-over-month decrease in foreclosure activity in June. The state reported 5,705 foreclosure filings during the month, a foreclosure rate of one foreclosure filing for every 317 households — still more than twice the national average.

Other states with foreclosure rates ranking among the nation’s 10 highest in June were Florida, Arizona, Ohio, Michigan, Georgia, Connecticut and Indiana.

California, Florida, Ohio document largest foreclosure totals

Following California, Florida and Ohio registered the nation’s second and third highest state foreclosure filing totals in June. Florida reported 21,035 foreclosure filings during the month, a 3 percent decrease from the previous month but still more than double the number reported in June 2006. The state’s foreclosure rate of one foreclosure filing for every 347 households was more than twice the national average and ranked fourth highest among all the states.

Ohio reported 11,879 foreclosure filings in June, a 10 percent decrease from the previous month but a 100 percent increase from June 2006. With one foreclosure filing for every 403 households, the state’s foreclosure rate was 1.7 times the national average and ranked sixth highest among the states.

Other states with foreclosure filing totals among the nation’s 10 highest in June were Michigan, Texas, Georgia, Illinois, Arizona, Colorado and New Jersey.

California cities continue to dominate top metro foreclosure rates

California cities reported six of the nation’s top 10 metropolitan foreclosure rates in June, and the top four spots were occupied by California cities: Stockton, Merced, Modesto and Riverside-San Bernardino. All of the top four cities registered foreclosure rates that were more than five times the national average. Other California cities in the top 10 were Vallejo-Fairfield at No. 7 and Sacramento at No. 8.

Las Vegas documented a foreclosure rate of one foreclosure filing for every 138 households, giving it the fifth highest metro foreclosure rate. The foreclosure rate in Greeley, Colo., one foreclosure filing for every 146 households, ranked sixth highest.

Other cities in the top 10 were Detroit at No. 9 and Miami at No. 10.

The RealtyTrac Monthly U.S. Foreclosure Market Report provides the total number of foreclosure filings — both nationwide and by state — over the preceding month. Data is also available at the individual county level. RealtyTrac’s report includes documents filed in all three phases of foreclosure: Default — Notice of Default (NOD) and Lis Pendens (LIS); Auction — Notice of Trustee Sale and Notice of Foreclosure Sale (NTS and NFS); and Real Estate Owned, or REO properties (that have been foreclosed on and repurchased by a bank).

About RealtyTrac Inc.

Ranked as the third largest real estate site by MediaMetrix and No. 53 on Inc. magazine’s 2006 Inc. 500 list of the nation’s fastest-growing private companies, RealtyTrac Inc. (www.realtytrac.com), is the leading online marketplace for foreclosure properties, providing all the resources that home seekers, investors and real estate agents need to locate, evaluate and buy properties below market value.

Founded in 1996, RealtyTrac publishes the largest and most comprehensive national database of pre-foreclosure, foreclosure, For Sale By Owner, resale and new homes, with more than 1 million properties across the country, property reports, productivity tools and extensive professional resources. RealtyTrac hosts nearly 3 million unique visitors monthly and has been chosen to supply foreclosure data to MSN Real Estate, Yahoo! Real Estate and The Wall Street Journal’s Real Estate Journal. For current news and information regarding foreclosure-related issues and trends, visit our blog at www.ForeclosurePulse.com.



Disclaimer:This is a personal web site, reflecting the opinions of its author. It is not a production of my employer, and it is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.

You Got Some Junk in Your Trunk....I Mean Portfolio?

S&P may downgrade $12 bln of subprime securities

Rival rating agency Moody's cuts 399 mortgage-backed securities

By Alistair Barr, MarketWatch
Last Update: 7:09 PM ET Jul 10, 2007


SAN FRANCISCO (MarketWatch) -- Wall Street's two largest rating agencies signaled on Tuesday that problems in the subprime mortgage market aren't going away and will probably get worse as rising delinquencies weigh on U.S. house prices.
Standard & Poor's said it may downgrade $12 billion of subprime residential mortgage-backed securities (RMBS), while rival Moody's Investors Service downgraded 399.
S&P also said it's changing the way it evaluates those securities, partly because of unprecedented levels of misrepresentation and fraud, combined with potentially shoddy initial loan data. The new approach will be applied to new deals and could affect the ratings of other residential mortgage-backed securities, such as those issued this year, the agency noted.
"This will impact everyone along the food chain," said Andy Chow, portfolio manager at SCM Advisors LLC, a $14 billion San Francisco-based investment firm specializing in fixed-income and structured-finance markets.

Rest of Story


Disclaimer:This is a personal web site, reflecting the opinions of its author. It is not a production of my employer, and it is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.

The Subprime Slime Is.....

"Coming Down the mountain!"
Janes Addiction

US mortgage problem fears spark sell-off
By Michael Mackenzie and Saskia Scholtes in New York

Published: July 10 2007 20:55 | Last updated: July 10 2007 23:48

Fears of further problems in the US mortgage industry and the broader economy flared on Tuesday, triggering a sell-off in credit markets as investors sought safe havens.

Markets were rattled when Standard & Poor’s, the ratings agency, threatened to downgrade the credit ratings on some $12bn of bonds backed by US subprime home loans. This raised concerns of a broader repricing of risk in credit markets, leading to heavy losses for some investors, particularly in derivative markets.

Rival rating group Moody’s caused further disquiet after the markets closed when it said it had cut or was reviewing ratings for $5.7bn of mortgage-backed bonds. It downgraded 451 bonds and put another 82 on review.

The dollar tumbled to a record low against the euro, hitting $1.37, and also fell against the yen and sterling after speculation that a slump in the housing market would slow the US economy. The pound traded at $2.02.

US and European stocks sold off dramatically. The S&P 500 closed down 1.4 per cent at 1,510.12.

VIDEO
Jonathan Birchall on how the housing downturn is hitting Home Depot

Sentiment was hit further by profits warnings from bellwether stocks including DR Horton, the biggest home builder, Home Depot, the largest home improvement chain, and retailer Sears .

The warnings marked a downbeat start to the US second quarter earnings season, raising concerns that the housing market slowdown was hitting company profits. A further jump in oil prices compounded these worries as Brent crude reached $76.63 a barrel to hit an 11-month high.

In reaction, the corporate bond market sold off. At the same time, a closely watched derivative index tracking the riskiest subprime mortgage bonds issued in 2006 hit record lows. Subprime mortgages are issued to people with poor credit histories.

S&P said it had placed 612 classes of subprime mortgage bonds on watch for possible downgrades. At $12bn in all, the bonds represent 2.13 per cent of the $565.3bn in US residential mortgage bonds rated by S&P between the fourth quarter of 2005 and fourth quarter of 2006.

“The level of loss continues to exceed historical precedent and our initial expectations,” said Susan Barnes, credit analyst at S&P. “At this time, we do not see the poor performance abating.”

Ciaran O’Hagan, strategist at Société Générale, said: “We felt over the past few days that the market was gunning for a bout of risk aversion and was just lacking the excuse. Downgrades are a good enough one and the threat will clearly linger for a few months, if not longer.”

S&P also said it would review ratings for collateralised debt obligations, complex debt securities that package the subprime mortgage bonds under review.

Last month, two hedge funds managed by Bear Stearns ran into trouble with their investments in CDOs backed by subprime mortgages.

Additional reporting by Paul J Davies and Joanna Chung in London




Disclaimer:This is a personal web site, reflecting the opinions of its author. It is not a production of my employer, and it is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.