Silicon Investor (SI) -- The First Internet Community

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

To: Wyätt Gwyön who wrote (20229)	10/19/2004 10:51:43 AM
From: russwinter	Respond to of 110194

I listened to MDC's call, Q&A was good, one analyst (Margaret) challenged them. Apparently there is a new study indicating that up to 25% of purchases in "hot" markets are speculators. MDC admitted it was tough to police, but felt the problem was with non-public builders. The shocker was what MDC is using to finance purchases: first these are more company held, MDC keeps them, secondly 40% of them are ARMs, and 75% of these are interest only. The questioner asked the adjustment terms of these, and no answer was given. Loan to value average was in the "low 80's". Major MDC markets in 2003: Az 27% Calf 17% Co 24% Nv 18% Va 75 New expanding market is Utah.