Sub Prime Problems Hit Local Bank
"OceanFirst Financial Corp. said Monday it could be forced to buy back as much as $47 million in delinquent subprime real estate loans made last year by a mortgage subsidiary.
Problems at the subsidiary, Columbia Home Loans LLC of Valhalla, N.Y., have already caused OceanFirst, which operates the largest bank based in Ocean County, to restate its fourth-quarter earnings. Instead of a $4.6 million profit, the bank said late Friday it lost $1.6 million."
Full article...
Problems at the subsidiary, Columbia Home Loans LLC of Valhalla, N.Y., have already caused OceanFirst, which operates the largest bank based in Ocean County, to restate its fourth-quarter earnings. Instead of a $4.6 million profit, the bank said late Friday it lost $1.6 million."
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posted by Little_Silvered at 7:37 PM
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Beazer Homes Shares Plunge 17 Percent
Wednesday March 28, 12:35 am ET
Beazer Homes Shares Plunge 17 Percent After Feds Confirm Fraud Investigation
ATLANTA (AP) -- Shares of Beazer Homes USA Inc. fell more than 17 percent in after-hours trading after the FBI said it is among agencies investigating possible fraud in the company's mortgage lending practices and other financial transactions.
The Atlanta-based company, which has suffered hefty losses amid a downturn in the housing market, is the subject of an investigation by the FBI and the U.S. attorney's office in Charlotte, N.C., along with the Internal Revenue Service and the U.S. Department of Housing and Urban Development, FBI agent Ken Lucas said Tuesday.
Beazer shares dropped $5.38 to $26.03 in electronic trading after closing down 91 cents, or 2.8 percent, at $31.41 on the New York Stock Exchange.
RE http://biz.yahoo.com/ap/070328/beazer_homes_investigation.html?.v=2
Robert Shiller: “Bernanke Underestimating Downward Risk”
http://www.paperdinero.com/BNN.aspx?id=127
Shiller discusses housing, the January S&P/Case-Shiller results, the CME housing futures as well as his outlook. Shiller thinks that the Fed is underestimating the extent of the housing decline. Remember to check out PaperMoney’s S&P/Case-Shiller Tool to fully visualize the home price indexes.
Originally aired on: 3/28/2007 on CNBC
Running Time: 5 minutes 39 seconds
Here comes the Gov't bailout. Growing number of U.S. states mull mortgage refinance ...http://news.yahoo.com/s/nm/20070327/us_nm/usa_subprime_states_dc
Report: Subprime woes to drag housing in ’07
'The problem in the subprime area is just the tip of the iceberg'
http://www.msnbc.msn.com/id/17903104/
Updated: 12:18 p.m. ET April 2, 2007
LOS ANGELES - The subprime mortgage implosion will take even more steam out of the already slowing real estate market this year and beyond, according to a new economic report.
More than two dozen subprime lenders have shut down in recent months and others are scrambling to stay in business as a spike in defaults caused by borrowers unable to make payments has rocked the mortgage industry.
Now, as lenders tighten credit standards, the housing market will likely see further declines in price and output, senior economist David Shulman wrote in the quarterly Anderson Report to be released Monday by the University of California, Los Angeles.
“We suspect the problem in the subprime area is just the tip of the iceberg for the mortgage market as a whole,” Shulman wrote. “For all practical purposes, the subprime market is in the process of shutting down.”
A tougher credit environment will limit the number of first-time home buyers entering the market and make it tougher for others to refinance their subprime loans before they face a default or foreclosure.
Shulman expects housing starts to hit 1.33 million units this year, down from a previous forecast of 1.48 million units.
“For a housing market that has already witnessed housing starts decline by 36 percent, this is not good news,” he wrote.
Still, he does not forecast a recession but only a softening of the economy.
He expects growth in the nation’s gross domestic product to range from 1.7 percent to 2.5 percent through the first nine months of the year, and to average 3.25 percent next year.
The nation’s unemployment rate will tick up from February’s 4.5 percent to 5 percent by the third quarter before beginning a gradual decline, Shulman wrote.
Ryland Expects Loss in 1Q
Wednesday April 4, 7:12 pm ET
Ryland Sees Loss in Fiscal 1st-Quarter, Due to Charge, Lower Sales of Units
http://biz.yahoo.com/ap/070404/ryland_outlook.html?.v=1
CALABASAS, Calif. (AP) — The Ryland Group Inc., a homebuilder and mortgage finance company, on Wednesday said it expects to report a loss in its first quarter, due partly to a hefty impairment charge and lower sales of units.
The company expects a loss between 50 cents and 60 cents per share, for the quarter ended March 31.
That includes a $65 million impairment charge related to assets in Fort Myers, Fla., Phoenix, Southern California and Washington D.C.
Ryland also expects to write-off $15 million in goodwill associated with buying California homebuilder J.J. Brock & Sons in 1986.
Ryland also said its annual effective tax rate has grown to 39 cents from 37.5 percent, mainly due to the goodwill charge, which is nondeductible.
Not including the impairment charge, the goodwill write-off and the change in effective tax rate, the company expects earnings will be between 63 cents and 73 cents per share.
The company said aggressive pricing strategies have persisted in several markets, leading to the write-down of value of several assets.
Preliminary sales for the first quarter fell 26 percent to 2,989.
Shares closed down 65 cents at $41.25 on the New York Stock Exchange.
Sub prime crisis has taken larger dimensions.
Boise real estate
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