Mr. Pink's Picks: selected event-driven value investments Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Mr. Pink's Picks: selected event-driven value investments

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Mr. Pink who started this subject	8/2/2001 7:47:40 AM
From: RockyBalboa	Read Replies (1) of 18998

Credit quality gets worse, time to short mortgage co's... UCFCs mortgages sure a result of adverse selection but it applies to the general market...: >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> UCFC FUNDING: S&P Downgrades Ratings To Low-Bs ---------------------------------------------- Standard & Poor's lowered its ratings on all classes of UCFC Funding Corp.'s manufactured housing contract pass-through certificates series 1998-3. In addition, the rating on the A-1 class was placed on CreditWatch with negative implications. At the same time, Standard & Poor's affirmed its rating on United Companies Funding Corp.'s series 1996-2 class A-1 certificate. The lowered ratings and CreditWatch placement reflect high projected cumulative net losses on the manufactured housing contracts and deteriorating credit enhancement. Additionally, delinquency levels have been extremely high (90-plus day delinquencies were 9.88% in July 2001), and the average recovery rate has been less than 30% for the last 12 months. Overcollateralization has been depleted, and consequently, the B-2 class has experienced principal write-downs during seven of the last nine months. Collateral performance for this trust has continued to deteriorate after Standard & Poor's lowered its ratings on all classes in July of 2000. In October 1998, UCFC announced that it was exiting the manufactured housing originations business. Since then, recovery rates have been adversely affected and lower than originally expected by Standard & Poor's. The company also filed for Chapter 11 bankruptcy in March 1999. EMC Mortgage Corp., a wholly owned subsidiary of Bear Stearns Co. Inc., assumed servicing responsibility on UCFC's entire manufactured housing and home equity portfolios as of Dec. 31, 2000. The affirmed triple-'A' rating on class A-1 reflects a surety bond wrap provided by MBIA Insurance Corp., Standard & Poor's said. OUTSTANDING RATING LOWERED AND PLACED ON CREDITWATCH UCFC Funding Corp. Manufactured housing contract pass-thru certs series 1998-3 Class Rating To From A-1 A/Watch Neg AA OUTSTANDING RATINGS LOWERED UCFC Funding Corp. Manufactured housing contract pass-thru certs series 1998-3 Class Rating To From B-1 B-/Watch Neg BB- M-1 BBB-/Watch Neg A- M-2 BB/Watch Neg BBB

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next