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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: ChanceIs who wrote (76171)	4/18/2007 8:05:27 AM
From: ChanceIs	Respond to of 306849

DSL: Having posted w/o parsing I now discern these dubious DSL determinants: 1) IRS problems - maybe nothing to write home about, but then again: The IRS is currently auditing Downey's 2004 tax return, .....The potential after-tax interest assessment related to Downey's tax returns for 2003 through 2005 totals $10.8 million. 2) Higher Deposit Insurance: Operating expense totaled $65.6 million in the current quarter, up $4.1 million or 6.7% from a year ago. The increase primarily reflected a $1.8 million increase associated with higher deposit insurance premiums and regulatory assessments and a $1.5 million or 3.6% increase in salaries and related costs. 3) Negative Amortization Income: During the current quarter, approximately 31% of loan interest income represented negative amortization, up from both 29% in the fourth quarter of 2006 and 25% in the year-ago first quarter. (Note: The last time I looked and did a back of he envelope calculation, I arrived at some 60%, couldn't believe it and asked other board members to confirm. Perhaps the dramatic difference is that the above is INTEREST INCOME vice EARNINGS (neg amortization less expenses) FROM NEG AMORTIZATION. 4)