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Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: patron_anejo_por_favor who wrote (314754)	11/16/2005 4:29:57 PM
From: David Semoreson	Read Replies (1) \| Respond to of 436258

TIMBERRRRRR! FMF-UN.TO is an american morgage broker/servicer, gone public in canada as an income trust ... just suspended dividend yesterday cause they're feeling the pinch ... closed at 1.13 today from 6.15 two days ago ... down 82% ! CFC next? ======= FMF Capital Group Ltd. Reports Second Quarter Results and Announces Suspension of November Dividend; Expects to Defer Interest for November 20:04 EST Monday, November 14, 2005 Notwithstanding the significant growth in FMF Capital's mortgage loan originations and revenue in the second quarter, rising interest rates have reduced the premiums FMF Capital receives on sales of its mortgage loans, which negatively affects the amount of cash available for distribution. Rising interest rates have lead to declining demand from institutional loan purchasers for mortgage loans, including FMF Capital's mortgage loans, and have caused certain institutional purchasers to exit the market. In addition, further downward pressure on sales premiums has resulted from an increased supply of mortgage loans available for sale by other industry participants who have been willing to discount the prices they receive on the sale of mortgage loans. Recent data in the last couple of weeks for sales of mortgage loans to institutional purchasers indicates that industry participants, including FMF Capital, will continue to experience further premium compression on sales for the foreseeable future. Premiums on mortgage loan sales accounted for approximately 67% of total revenues for the three and six months ended September 30, 2005. FMF Capital's cash available for distribution also has been negatively impacted by an increase in mortgage loan repurchases resulting from increased early payment defaults. FMF Capital Group is a residential mortgage lending company that originates and funds primarily nonconforming or "nonprime", mortgage loans in the United States and sells those mortgage loans to institutional loan purchasers within an average of 35 days of funding. FMF Capital originates its mortgage loans through a network of more than 5,000 independent mortgage brokers.