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 : Mr. Pink's Picks: selected event-driven value investments -- Ignore unavailable to you. Want to Upgrade?

To: Mad2 who wrote (3749)	10/7/1998 11:21:00 PM
From: NASDBULL	Respond to of 18998

RE: Securitization. FP seems very similar to PVN. Over $1 billion in mortgage loans that resemble FP's 125% equity loans. Also, this information is dated and that 1 billion number is probably larger. <<<<<<<<<<<<<<<< Home Loan Products The Company's home loan products ("Home Loan Products") consist primarily of home equity lines of credit, which are offered to targeted individuals in 26 states through direct mail and telemarketing. At December 31, 1997, the Company had $1,063 million of managed home loans outstanding (of which $563 million were on-balance sheet). The Company's strategy for Home Loan Products is to target homeowners with significant debt, and to offer them a home equity line of credit for debt consolidation and cost savings through a lower interest rate and tax advantages. By taking a security interest in the customer's home, the Company can offer an attractive opportunity to customers who might otherwise be unable to achieve debt consolidation, while managing risk in a manner the Company considers prudent. Many of the skills employed to execute this strategy for Home Loan Products were originally developed for Unsecured Spread Products. These skills, including database marketing, customer targeting and risk management, have been adapted by the Company specifically for home equity lending. In executing its Home Loan Product strategy, the Company focuses on the following principles: (i) evaluating the borrower's credit history in addition to the value of the real estate which secures the loan; (ii) marketing through direct mail, which allows both customer and regional selectivity and allows the Company to react quickly to local economic and real estate market changes; (iii) utilizing a two-step process of lead 6 generation and lead conversion with a universal offer and customization at the back end; and (iv) establishing primary lender relationships by successfully targeting borrowers and consolidating debt. The Company offers home equity lines of credit with higher loan-to-value ratios, which may exceed 100%, when the Company considers it warranted based on the customer's credit quality and other factors. Home equity lines of credit are currently structured as 15-year loans, with a 10-year revolving period followed by a five-year amortization. Interest rates on the Company's home equity lines of credit are generally variable and are indexed to the prime rate. Credit lines, loan-to-value ratios and interest rates (the spread above the prime rate) are determined by collateral and credit quality levels. For certain customers, the Company has also offered fixed rate, amortizing mortgage loans, primarily as a part of its customer retention strategy. However, the Company may offer increased numbers of fixed rate, amortizing mortgage loans in the future.

To: Mad2 who wrote (3749)	10/8/1998 12:29:00 AM
From: chester lee	Read Replies (1) \| Respond to of 18998

<<Someone calling himself "Mr. Pink" has been posting messages critical of IndyMac on the Yahoo! message board, Mr. Perry said. FirstPlus Financial Group, Dallas, recently said a critic using the same moniker was sabotaging its stock. "That's the terrible thing about the Internet," Mr. Perry said. "These guys can hide behind a pseudonym." >> Hahahhaha! Cough cough. Woops, choked on my tongue. Imagine, being a CEO and realizing that someone behind a computer can post information which can cause your company to go bankrupt. Talk about power.One has to wonder about the quality of CEO's now a days. chester