Sonoma Housing Bubble

Pulling the cork out of Sonoma's bubbly housing foolishness

Friday, March 30, 2007

Still a Long Way from the Bottom

“‘There’s a reason why D.R. Horton’s CEO said, ‘07 is going to suck’, Parrish Glover told CNNMoney. ‘We’re not even expecting a recovery in the next 18 months. Even for the next three to five years, we’re not looking at an especially robust market.’”

“On Tuesday, Lennar CEO Stuart Miller told investors on the company’s conference call that some markets were still seeing declines, according to Reuters. That comment and other recent signs probably mean the industry is still a long way from the bottom, said Morningstar analyst Parrish Glover.”

“‘This kind of bull market that’s deflating is something that comes around once every 20 years,’ he said.”

"A Credit Suisse Group unit is charging three subprime mortgage lenders with violating loan obligations and has filed lawsuits totaling over $30 million."

"DLJ Mortgage Capital Inc., a Credit Suisse unit that purchases mortgage loans from lenders, alleges in separate suits that Sunset Direct Lending LLC and Infinity Home Mortgage Co. Inc. breached agreements to repurchase loans they originated."

"DLJ is seeking nearly $24 million in buybacks from Sunset and $3 million from Infinity. The suits allege that the lenders violated agreements to repurchase loans in the event of payment defaults. The suits cite clauses that require repurchases if borrowers are delinquent for 30 days within the first three months of the loan sale."

"DLJ also filed suit against Netbank Inc. alleging failure to provide both funds and information relating to purchased loans. The suit seeks $4 million in damages. The three suits, filed in the U.S. Southern District Court in New York, likely represent a new chapter in the subprime mortgage crisis, where underperforming loans have threatened both lenders and the Wall Street firms that purchased them."

""2006 may prove to be the worst subprime vintage ever," Roelof Slump, a U.S.-based managing director for the ratings agency said, adding that he expects losses of between 6% and 8% in the value of these bonds."

"Slump later told Reuters that problems in the subprime housing market could have an impact on the overall housing sector in the United States. "We do believe that the very same things that are happening in the subprime market are likely to be happening in the Alt-A market, again driven by home prices." he said."

“The long list of participants in the subprime mortgage crisis will not go unscathed in sharing the pain but should work together to find solutions to the problem, a U.S. banking regulatory official said on Wednesday.”

“She said data suggest 52 percent of subprime mortgages are originated by independent mortgage banking companies, 23 percent by banks and thrifts, 13 percent by mortgage banking subsidiaries of bank and thrifts and 12 percent by mortgage banking units of bank and thrift holding companies.”

“The pain starts with borrowers and then mortgage brokers and bankers to brokerage firms, parties involved in securitizing mortgages, domestic and foreign investors, and insurance companies, she said.”

“‘I believe there is more than enough blame to go around,’ Sara Kelsey, general counsel of the Federal Deposit Insurance Corporation, said.”

“David Lereah (Chief Wind in his pants Economist for the National Ass of Realtors)warned against overreaction to the situation. ‘Tougher lending standards imposed by the marketplace and the regulators are necessary, but we need to be mindful of overcorrection. Responsible lending practices are what the doctor ordered, not practices that cause a credit crunch,’ Lereah said.”

Effed Builder in Sonoma?

(from Craig's list)

New Homes Town of Sonoma

Are you getting ready to purchase a home? Think about buying a new home as there are new homes being built in the town of Sonoma. Please contact me if you would like to get more info about the new homes and home buying programs in Sonoma.


At 3/30/2007 01:25:00 PM , Anonymous marinite said...

Isn't it amazing how all these so-called experts have now found religion and are now saying what was obvious to us a couple of years ago? I mean you didn't have to be effing Nostradamus to see how broken things were. The stench of corruption is just too much for me. I am seriously hoping for some serious tarring and feathering in our neo-feudal society (according to Hudson).

At 3/30/2007 01:28:00 PM , Anonymous marinite said...

And the doood's name is "Slump". Ahahaha how perfect is that?

At 4/05/2007 04:35:00 PM , Anonymous Anonymous said...

"Oh, the more it changes
The more it stays the same;
And the Hand just rearranges
The players in the game;
(guitar riff)
I had a dream...
It seemed I stood alone...
And the veil of all the years
Went sinking from my eyes like a stone;
(building guitar rhythm)
-- Al Stewart, "Nostradamus"


Post a Comment

Subscribe to Post Comments [Atom]

Links to this post:

Create a Link

<< Home

My Zimbio
Top Stories Bloggapedia - Find It!

Estate Real, House New

Housing Crisis

Free Site Submit by