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: zebra4o1 who wrote (36997)	7/26/2005 1:25:44 PM
From: russwinter	Read Replies (1) \| Respond to of 110194

It's getting tough to make profitable mortgages when borrowers don't have to pay interest. And cost of funds is way up in July from April-June. We will see how these companies perform when borrowers don't make payments at all.() Must be a masterplan in there somewhere, please clue me in? Mortgage banking pretax profit fell 48 percent to $526.4 million. Production margins shrank to 40 basis points (0.4 percentage points) from 93 basis points in the first quarter, a bigger decline than several analysts expected.* COMPETITION FROM LENDERS "Pressure is coming from the point of origination," Chief Executive Angelo Mozilo said on a conference call. "We're not able to originate these loans at the pricing that we were able to do before." Mozilo said margins on prime mortgages, especially three- to five-year hybrids, are under pressure amid competition from such lenders as Wells Fargo & Co. (WFC.N: Quote, Profile, Research) , Bank of America Corp. (BAC.N: Quote, Profile, Research) and JPMorgan Chase & Co. (JPM.N: Quote, Profile, Research) . In subprime lending, competition from Ameriquest Mortgage Co. and New Century Financial Corp. (NEW.N: Quote, Profile, Research) crimped margins. " (*) Provision for loan loss reverse LOWERED and on a larger, riper portfolio, nice way to manage earnings: Provision for loan losses 2q, 05 (17,101) 2q, 2004 (19,747) (-13%)