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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: CalculatedRisk who wrote (15961)	6/28/2004 5:35:40 PM
From: ild	Respond to of 110194

<<<CFC has a strong "mortgage servicing rights" >>> Loan servicing is a very good, stable, high margin business. CFC loan servicing portfolio grew from $250 Bln in 2000 to $644 Bln in 2003. This is a big growth but no way it can justify current share price. I'd also think that recent increased competition has somewhat shrunk mortgage servicing margins. The only possible growth business CFC has ahead is earning fees for facilitating in foreclosures. At the same time it has floated a big deal of “private-label” MBS. They guarantee timely payment of principal and interest at least on portion of their MBS.