HomeBanc BK & Countrywide 10Q
Mortgage lender HomeBanc Corp has filed for Chapter 11 bankruptcy protection, two days after agreeing to sell most of its assets to Countrywide Financial Corp.
HomeBanc listed $5.1B of assets and $4.9B of debt to creditors including JPMorgan Chase; KeyCorp and US Bancorp.
The largest shareholder is drum roll please... FMR Corp., the parent of Fidelity Investments, which owned 8.53M, or about one-sixth, of the company's shares.
Calculated Risk does an excellent job covering the "disclaimer" verbiage in Countrywides 10Q.
The Nattering One pokes around at the numbers and fine print... From the 10Q filed Thursday by Countrywide Financial
YOY: Revenue -15%; Servicing Hedge Losses +110% to $1.4 Billion;
Jun 30 07: 1,373,089,000
Dec 31 06: 621,074,000
Impairment of credit sensitive retained interests +855% to $782M:
Jun 30 07: $782,296,000
Jun 30 06: $91,496,000
(including $521.0M related to subordinated interests on prime home equity securitizations and $255.9M related to nonprime and relatedresidual interests.)
Net Earnings -33%; Earnings from: Mortgage Banking -49%;
We recorded impairment of retained interests of $696.7M in the Loan Servicing Sector compared to $68.6 M in the year-ago period.
Banking -60%; provision for credit losses increased by $311M. The impact was most significant on prime home equity loans.
Capital Markets Revenue -31%. Capital Markets Segment revenues primarily as they relate to nonprime loans, were adversely impacted by deteriorating market conditions, specifically higher investor yield requirements.
Also, the volume of loans sold declined by 57%, reflecting adverse market conditions, reduced CHL loan production and fewer third party loan purchases.
Have a gander at the ratio increases and look at the added non prime mortgages being carried on the books as compared to Dec 31 06.
Derivative Financial Instruments Note 7:
Loans held for investment Mortgage banking NON PRIME +1000% to $1.2 Billion:
June 30 07: 1,238,836,000
Dec 31 06: 115,054,000
Hedging and mortgage pipeline derivatives: Mortgage loans held for sale and pipeline related +700% to $500M
June 30 07: 499,401,000
Dec 31 06 78,066,000
Now, have a look at the "portfolio" of REO properties Countrywide couldn't sell at Trustee Sales and is now caught holding, 2273 in California alone.
Any further liquidity crunch, spread widening, derivatives misbehavior, or devaluation of MBS or real estate on the books will severely impact Countrywide's solvency.
HomeBanc listed $5.1B of assets and $4.9B of debt to creditors including JPMorgan Chase; KeyCorp and US Bancorp.
The largest shareholder is drum roll please... FMR Corp., the parent of Fidelity Investments, which owned 8.53M, or about one-sixth, of the company's shares.
Calculated Risk does an excellent job covering the "disclaimer" verbiage in Countrywides 10Q.
The Nattering One pokes around at the numbers and fine print... From the 10Q filed Thursday by Countrywide Financial
YOY: Revenue -15%; Servicing Hedge Losses +110% to $1.4 Billion;
Jun 30 07: 1,373,089,000
Dec 31 06: 621,074,000
Impairment of credit sensitive retained interests +855% to $782M:
Jun 30 07: $782,296,000
Jun 30 06: $91,496,000
(including $521.0M related to subordinated interests on prime home equity securitizations and $255.9M related to nonprime and relatedresidual interests.)
Net Earnings -33%; Earnings from: Mortgage Banking -49%;
We recorded impairment of retained interests of $696.7M in the Loan Servicing Sector compared to $68.6 M in the year-ago period.
Banking -60%; provision for credit losses increased by $311M. The impact was most significant on prime home equity loans.
Capital Markets Revenue -31%. Capital Markets Segment revenues primarily as they relate to nonprime loans, were adversely impacted by deteriorating market conditions, specifically higher investor yield requirements.
Also, the volume of loans sold declined by 57%, reflecting adverse market conditions, reduced CHL loan production and fewer third party loan purchases.
Have a gander at the ratio increases and look at the added non prime mortgages being carried on the books as compared to Dec 31 06.
Derivative Financial Instruments Note 7:
Loans held for investment Mortgage banking NON PRIME +1000% to $1.2 Billion:
June 30 07: 1,238,836,000
Dec 31 06: 115,054,000
Hedging and mortgage pipeline derivatives: Mortgage loans held for sale and pipeline related +700% to $500M
June 30 07: 499,401,000
Dec 31 06 78,066,000
Now, have a look at the "portfolio" of REO properties Countrywide couldn't sell at Trustee Sales and is now caught holding, 2273 in California alone.
Any further liquidity crunch, spread widening, derivatives misbehavior, or devaluation of MBS or real estate on the books will severely impact Countrywide's solvency.
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