This development is sure to rock AHM & the mortgage lenders' worlds in a big way. Truly astonishing given the early March PR...
o - Poor bids on their offerings in the secondary market -- "materially lower prices, both for loan pools and for "AA", "A", "BBB" and residual mortgage securities"
o - Buying back failed AltA for EPD at a surprising rate -- " ongoing high delinquency related charges due to the Company establishing additional reserves for increases in non-performing loans"
o - Markdowns on portfolio: -- "reducing our gain on sale revenue and causing mark-to-market losses in our portfolio"
o - Stopped offering some types of loans -- "The Company has ceased offering those types of Alternate "A" loans that have resulted in a high proportion of its repurchases"
o - Raising rates? "we will attempt to restore our gain on sale margins by raising interest rates charged to consumers"
This must be sobering news for the longs and knife catchers that picked this stock up "on the cheap" after their disingenous PR. Not to mention the effects it's sure to have on their competitors. "Contained to subprime" LOL!
I think some other players in the market were on top of this a little better than these guys--not sure if their portfolio is similar to NDE, but NDE cut guidance twice already due to similar issues and was forecasting about a 10% ROE for 1Q and talking a lot about how difficult it was going to be due to EPD etc. AHM's old guidance put them at about a low 20's ROE for 2007...the new 1Q guidance looks like about a 10% ROE which seems more like it.
I'd heard some rumblings about the secondary market getting tougher towards the end of March but this is the starkest language I've seen--anyone follow the secondary market pretty closely & have a good read on what's been going on?
Boo hiss...get off your bandwagon, AHM is a rock solid REIT, and has steered clear of subprime lending. This is a value stock if there has ever been one, contaminated only by its industry's failings and not by its own fundamentals.
AHM is not only a rock solid REIT, over the years they have given (me) a fantastic return on investment. AHM is hardly active in the subprime, but of course, if the're is a hurricane in the subprime, there wille be a storm for the serious en solid REIT's. I'll advise clients to go with the wind and pick up AHM now.
Buy now indeed. If you look at the portfolio of AHM it is clear that they stay away from subprime lending. In my opinion this is a golden opportunity if you have cash now and want to cash the coming years. Remember even in this poor period you will receive at least 10% on you investment. Next year probably some more.
All previous comments failed to refinance on Haloscan and are foreclosed. Whatever.
Correct. It is now all an oral tradition passed on by wizened old Shamans to each new generation of wide-eyed children.
The 48 bloggered original comments are still here:
https://www2.blogger.com/comment.g?blogID=10004977&postID=5698707605112977834
Thanks for original comments pointing to original docs:
8-K
Error Report
AHM press release
Error Report
This development is sure to rock AHM & the mortgage lenders' worlds in a big way. Truly astonishing given the early March PR...
o - Poor bids on their offerings in the secondary market -- "materially lower prices, both for loan pools and for "AA", "A", "BBB" and residual mortgage securities"
o - Buying back failed AltA for EPD at a surprising rate -- " ongoing high delinquency related charges due to the Company establishing additional reserves for increases in non-performing loans"
o - Markdowns on portfolio: -- "reducing our gain on sale revenue and causing mark-to-market losses in our portfolio"
o - Stopped offering some types of loans -- "The Company has ceased offering those types of Alternate "A" loans that have resulted in a high proportion of its repurchases"
o - Raising rates? "we will attempt to restore our gain on sale margins by raising interest rates charged to consumers"
This must be sobering news for the longs and knife catchers that picked this stock up "on the cheap" after their disingenous PR. Not to mention the effects it's sure to have on their competitors. "Contained to subprime" LOL!
Stock Help - Stock Market Help - Stocks Help
I think some other players in the market were on top of this a little better than these guys--not sure if their portfolio is similar to NDE, but NDE cut guidance twice already due to similar issues and was forecasting about a 10% ROE for 1Q and talking a lot about how difficult it was going to be due to EPD etc. AHM's old guidance put them at about a low 20's ROE for 2007...the new 1Q guidance looks like about a 10% ROE which seems more like it.
I'd heard some rumblings about the secondary market getting tougher towards the end of March but this is the starkest language I've seen--anyone follow the secondary market pretty closely & have a good read on what's been going on?
Boo hiss...get off your bandwagon, AHM is a rock solid REIT, and has steered clear of subprime lending. This is a value stock if there has ever been one, contaminated only by its industry's failings and not by its own fundamentals.
AHM is not only a rock solid REIT, over the years they have given (me) a fantastic return on investment. AHM is hardly active in the subprime, but of course, if the're is a hurricane in the subprime, there wille be a storm for the serious en solid REIT's. I'll advise clients to go with the wind and pick up AHM now.
Buy now indeed. If you look at the portfolio of AHM it is clear that they stay away from subprime lending. In my opinion this is a golden opportunity if you have cash now and want to cash the coming years. Remember even in this poor period you will receive at least 10% on you investment. Next year probably some more.