These are getting so common that I won't even bother posting about them after this.
HomeBanc Corp. Announces Intention to Exit the Mortgage Loan Origination Business
biz.yahoo.com
ATLANTA, Aug. 7 /PRNewswire-FirstCall/ -- HomeBanc Corp. ("HomeBanc" or "the Company") today announced that it intends to exit the mortgage loan origination business.
The Company at present is unable to borrow on its credit facilities and was unable to fund its mortgage loan funding obligations beginning August 6, 2007. Accordingly, the Company does not anticipate funding any future mortgage loans, and is no longer accepting any mortgage loan applications or funding any mortgage loans previously originated and not yet funded. The Company is seeking the most appropriate course of action to preserve the value of its remaining assets.
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and then there is this one
investing.businessweek.com
Ahead of the Bell: Luminent Mortgage
Luminent Mortgage Capital Inc. is the next troubled mortgage-related company to fall, a slew of analysts said in downgrading the San Francisco-based investment trust Monday and Tuesday.
Just a week ago, Luminent Mortgage Capital assured the market it was not exposed to the liquidity squeeze gripping much of the mortgage industry.
As buyers flee the market for risky mortgage debt, all types of mortgage-backed securities are fast losing value. The banks that finance investors in these markets are pulling the plug, leading to widespread defaults, liquidations and bankruptcies.
Luminent said last week it was not really subject to this risk. It does not issue loans, but rather purchases loans backed by good credit. The company confirmed it still planned to pay its dividend and had enough cash to keep operating.
A week later, Luminent issued a news release some analysts said spells the company's demise.
Luminent's markets "have deteriorated significantly and in an unprecedented fashion." Its lenders want their money back. The company suspended its dividend and said it will be late repaying some of its debt. It delayed certain regulatory filings and canceled a conference call to discuss quarterly earnings.
Analysts from Friedman Billings Ramsey; Deutsche Bank; J.P. Morgan Securities; and Keefe, Bruyette & Woods downgraded Luminent to the equivalent of "Sell." Some said they expect the company to follow American Home Mortgage Investment Corp. and New Century Financial Corp. into liquidation or bankruptcy.
Friedman Billings Ramsey analyst Merrill Ross said he has "no hope" for the company's survival.
"Management's credibility is shot," he said. He cut his price target to $1. The shares, which closed Monday at $4.38, entered August at more than $7 and closed 2006 at more than $9.70.
Bose George, an analyst with Keefe, Bruyette & Woods, cut his price target to $3. That is what he thinks will be available to shareholders after the company liquidates its $9.5 billion in assets, which include home loans and mortgage-backed securities. |
