AccessMyLibrary provides FREE access to over 30 million articles from top publications available through your library.
Create a link to this page
Copy and paste this link tag into your Web page or blog:
What Came First - Crazy Loans or High Prices?
Remember when the accounting shenanigans of Fannie Mae and Freddie Mac were plastered across the front pages of our sister publications National Mortgage News and American Banker? Remember when the editorial page of The Wall Street Journal constantly lambasted the GSEs for blood sport? No more. The big story in mortgageland is subprime.
I must say, the GSEs are not looking bad these days - nor is the rest of the "conventional" market, which likely will benefit from the current carnage being suffered in the subprime sector. In case you just woke up from a coma, the B&C industry is in a freefall, the likes that haven't been seen since 1998 when the Russian debt crisis and concerns about gain-on-sale accounting hammered the industry as several public firms went belly up.
A handful of veteran mortgages executives have told me they think the current nuclear meltdown is worse than 1998. (We shall see.)
This time around not one publicly traded B&C lender has officially failed but New Century Financial Corp. - the No. 2 ranked B&C funder - certainly is a candidate for that distinction. And shareholders in subprime stocks have seen hundreds of millions (billions, perhaps?) in value go up in smoke the past two months. Can you spell "class-action lawsuit"?
Oh, it's ugly alright. Wall Street is playing Mr. Potter to New Century's George Bailey. There's plenty of blame to go around. Bottom line: the subprime sector will survive but it will be a shadow of its former self. Over the past two years - according to the Quarterly Data Report - subprime production has accounted for 25% of all originations. In the old days it was 5% to 10%.
Yes, a new reality has set into the business. It's all for the good, though. Now, we can ask the basic question: what came first, the chicken or the egg? Or what came first, outrageous home prices or stupid loans (payment-option ARMs) that allowed consumers to bid up the price of housing by keeping their monthly payments artificially low? And who pushed these crazy mortgages on consumers in the first place - lenders or Realtors or ...
- David Duquette, President and CEO of New Century Companies Interviewed By The...
- Press release article from: Business Wire October 3, 2005 700+ words
...NEW YORK -- The Wall Street Transcript has...President and CEO of New Century Companies, Inc...Duquette stated, "New Century has a major competitive...older, making New Century machines heavier...industry." The Wall Street Transcript does...
- New Century Financial Corporation Makes Top Performing List in Wall Street...
- Press release article from: PR Newswire February 28, 2005 700+ words
...in Three-Year Average Annual Return New Century Financial Corporation , a real estate...and Worst Performers of The WSJ 1000. New Century ranked number three among the five top...2004. "We are extremely proud that New Century is among the top performing companies...
- Subprime squabble.(Wall Street West)(Greenlight Capital Inc.'s reports about...
- Magazine article from: Los Angeles Business Journal May 23, 2005 700+ words
New Century Financial Corp. could have a fight...based subprime mortgage lender, saying New Century's executives haven't done enough...David Einhorn went as far as calling New Century's central strategy a failure. The...
- New Century Raises 2003 Guidance; Announces Three-for-Two Stock Split.
- Magazine article from: National Mortgage News May 26, 2003 700+ words
...Robert Cole, chairman and CEO of New Century, in a statement released by...giving effect to the split, New Century's revised EPS guidance is...The news was greeted warmly by Wall Street, where New Century had already become something...
- Zacks All Star Analysts Portfolio Highlights: Caterpillar, Microsoft, New...
- Press release article from: Business Wire March 11, 2005 700+ words
...Corporation (NASDAQ:MSFT), New Century Financial Corporation (NYSE...billion, both of which topped Wall Street expectations. New Century Financial Corporation (NYSE...quarter being seasonally low. New Century Financial said production...
- How New Century ran out of money.
- Newspaper article from: Orange County Register (Santa Ana, CA) April 15, 2007 700+ words
...the type of loans Wall Street would buy and New Century's financial backers...Oberhelman said. While New Century's defenders say...storm, critics on Wall Street, aggrieved shareholders...ex-employees say New Century sank because of poor...
- New Century Equity Holdings Corp. Announces Board Appointment.
- Press release article from: PR Newswire May 23, 2001 700+ words
...Executive Officer of New Century Equity Holdings Corp...an excellent fit with New Century." The Company today also announced that The Wall Street Transcript has published...and payment service. New Century Equity Holdings is the...
- New Century says co-founder leaving.
- Newspaper article from: Orange County Register (Santa Ana, CA) June 13, 2007 700+ words
...continues, New Century said. New Century announced the sale of one...other proprietary technology. New Century collapsed this spring amid...2006. The news triggered Wall Street creditors to call for New Century to repurchase up to $8 billion...
Source: HighBeam Research, What Came First - Crazy Loans or High Prices?