Friday, December 08, 2006

crash boom bang! / subprime

this event is really an importend one. looks like the dots are connecting........ lets hope that all the mbs are "insured" by derivatives/cds... :-)! i´m sure the hedgefunds and pensions plans etc. have done this...... no wonder the risk premiums in this segment are starting to spike. thanks to russ winter for the chart http://wallstreetexaminer.com/blogs/winter/

dieses beispiel zeigt eindrucksvoll wie schnell der markt an die wand gefahren ist und so langsam aber sicher die fakten nicht mehr zu leugnen sind. man kann nur hoffen das alle hedge fonds und pensionkassen die diese mbs gekauft haben und nun nicht mehr zurückgeben können ihr risiko über derivate/cds abgesichert haben.... :-). guckt euch den chart an und ihr seht wie schnell diese art der mbs crashen. nach der meldung wird sich das ganze sicher beschleunigen. dank für den chart an russ winter http://wallstreetexaminer.com/blogs/winter/
Subprime lender Ownit Mortgage shuts down http://tinyurl.com/yzkcne

Ownit Mortgage Solutions, a California company that described itself as one of the top 15 lenders to homeowners with weak or no credit histories, has shut down, citing "the current unfavorable conditions of the mortgage industry."

Merrill Lynch & Co. (MER) and private equity firm CIVC Partners hold stakes in Ownit, which built its book of new loans to $8.3 billion in 2005 from $1.1 billion in 2003, in part by introducing products like 45-year mortgages, according to its Web site. Ownit's demise comes as subprime mortgage lenders are being squeezed by higher funding costs, weakening loan demand and rising delinquencies.


"Effective Dec. 5, Ownit closed its doors, and we are no longer able to fund or process your loans," the company said on a recorded telephone message. "We apologize for any inconvenience."

Ownit ran out of cash needed to meet its obligations to repurchase loans from investment banks and others (like hedge funds, pesnsion plans etc......) who bought them in the secondary market, people in the industry said. The banks, which convert the loan payments into mortgage-backed securities for sale to investors, can force the original lenders to repurchase loans if the mortgage borrowers default. ....

The end came quickly for Ownit.

"We were all working yesterday, assuming we were fine," Dave Hanthorn, a New Jersey-based employee who sells the firm's loans to mortgage brokers, said Wednesday evening. "At 5:15 last night we got the call that we were ceasing operations." He said the company gave no explanation for its funding problems.

..... The company took down the site - ownitmortgage.com - Wednesday afternoon so as "not to confuse" clients, said Dickinson.

Ownit laid off all its staff......

much more details ind insights on this topic / mehr hierzu :

mish http://globaleconomicanalysis.blogspot.com/2006/12/demise-comes-quickly.html
sacalmtgguy http://housingbubblecasualty.com/?p=50
aaron
http://www.autodogmatic.com/index.php/sst/2006/12/08/housing_finance_breakdown_begins
roubini http://www.rgemonitor.com/blog/roubini/162056

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