Housing Permits, FHLMC, DR Horton, Target, Enhanced Cash Fund Bailouts
Summary: "Happy Daze" headline housing starts +3%, under the sheets, SFR permits fell to their lowest since 1991.
DR Horton worst in a decade; Target reports loss; FHLMC $2 Billion loss and short on cash; Enhanced Cash Fund bailout in progress; Tax Man ousts CEO on $1 Billion loss.
Housing Starts Oct +3% at 1.229M vs prior 1.193M Full Report
Inside the number: YOY -16.4%; YTD -24.2%. SFR -7.3%, lowest since 1991. YOY -25.1%; YTD -27.5%.
Building Permits Oct -6.6% at 1.178M vs prior 1.261M, lowest since 1993. YOY & YTD -24.5%. SFR -8%, YOY -31%; YTD -28.4%.
DR Horton in Whoville... DR Horton, reported a Q4 loss and its worst annual results in at least a decade. Net sales orders fell the most in the company's California region, dropping 58%.
The 2nd largest U.S. homebuilder, reported a net loss of $712.5 million for the year, and $50.1 million Q4 loss vs $277 Million profit a year ago.
Revenue -35%; Orders -39%; Backlog of homes under contract and not yet sold -42%. The value of D.R. Horton's backlog fell 48% to $2.7 billion.
Off Target... #2 U.S. discount chain, posted an unexpected decline in Q3 profit -4.4%, and joined the top 6 retailers with lowered sales forecasts.
Transports, then retailers, then industrials....The bad news on higher revenue +9.3%, which includes credit card payments.
Target also said it will buy as much as $10 billion of its stock, which lost 24% of its value since reaching a record in July.
Barney Frank's Bailout, FHLMC short on cash...
Today, Freddie Mac, the 2nd largest U.S. mortgage company, posted a record $2 Billion loss and warned of a possible 50% cut in the dividend and the need for additional capital.
Freddie had mark to market losses totaling $2.7 billion for the quarter. For the same period last year, Freddie Mac recorded mark to market losses of $1.5 billion.
For Q3, Freddie provided $1.2 billion for credit losses vs $112 Million a year ago, and reduced the value of assets by $3.6 billion. The Q3 loss was almost triple the $715 million a year earlier.
A slump in the value of mortgages shrunk FHLMC core capital by $1.5 Billion to $34.6 Billion vs $36.1 Billion last year, only $600 million in excess of the 30% regulatory requirements.
FYI: FNMA capital in excess of its current minimum regulatory requirement fell by $1.2 billion from June 30 to $600 million on Sept. 30 as Q3 net loss more than doubled to $1.39 billion.
September 30th, Freddie Mac's unpaid principal balance on portfolio $713 billion, on October 31st, shrinking to $703 billion. $10 Billion up in smoke in only a month.
Year to date, the percentage of interest only loans doubled to 9% and seriously delinquent loans went from $6.9 Billion to $10.6 Billion, a 53% increase.
The Nattering One muses... By hook or crook, no pun intended...
Congress wants FHA, FNMA & FHLMC to increase their loan limits and refi or buy more delinquent and subprime loans.
Fannie & Freddie own or guarantee 40% of the $11.5 trillion U.S. home loan market, and have lost $41 billion in market value this year.
Relax, Freddie has hired Goldman Sachs and Lehman Brothers as financial advisors to help it consider very near term capital raising alternatives.
And we all know how well these guys are doing with their financial chicanery of late...
Yeah, Barney Frank wants the GSE's to raise loan limits, and buy more of these toxic loans to bail out Wall Street and the lenders, great idea?
Does it get any better? Lets buy the fraudulent loans back...
FHLMC and FNMA were previously subpoenaed in regard to their involvement in artificially inflating appraisals that would produce larger mortgages for customers.
Enhanced cash fund bailouts...
Enhanced cash funds which hold about $850 billion in assets in the U.S., are sold to wealthy investors and institutions as an alternative to money market funds.
Bear Stearns Enhanced Income Fund has slipped below its $1 net asset value, trading at 99 cents on the dollar.
General Electric Co.'s GEAM Trust Enhanced Cash Trust, an enhanced cash fund, returned $600 million to investors at 96 cents on the dollar.
Today, joining Legg Mason, SEI Investments, SunTrust Banks and B of A...
Federated Investors, the 3rd largest manager of money market accounts in the U.S., bailed out its Enhanced Reserve cash fund.
The 1st to bailout its funds, B of A, said it may provide as much as $600 million to money funds and institutional cash funds that have been hurt by bad debt.
Even the Tax Man...
Citigroup and Merrill Lynch ousted their CEOs. Today, H&R Block, the biggest U.S. tax preparer, replaced Chairman and Chief Executive Officer Mark Ernst...
After $1 billion of losses tied to the collapse of the subprime mortgage market. HR Block owns Option One, which ranked as the 6th largest U.S. subprime home lender. Hattip to Bloomberg.
DR Horton worst in a decade; Target reports loss; FHLMC $2 Billion loss and short on cash; Enhanced Cash Fund bailout in progress; Tax Man ousts CEO on $1 Billion loss.
Housing Starts Oct +3% at 1.229M vs prior 1.193M Full Report
Inside the number: YOY -16.4%; YTD -24.2%. SFR -7.3%, lowest since 1991. YOY -25.1%; YTD -27.5%.
Building Permits Oct -6.6% at 1.178M vs prior 1.261M, lowest since 1993. YOY & YTD -24.5%. SFR -8%, YOY -31%; YTD -28.4%.
DR Horton in Whoville... DR Horton, reported a Q4 loss and its worst annual results in at least a decade. Net sales orders fell the most in the company's California region, dropping 58%.
The 2nd largest U.S. homebuilder, reported a net loss of $712.5 million for the year, and $50.1 million Q4 loss vs $277 Million profit a year ago.
Revenue -35%; Orders -39%; Backlog of homes under contract and not yet sold -42%. The value of D.R. Horton's backlog fell 48% to $2.7 billion.
Off Target... #2 U.S. discount chain, posted an unexpected decline in Q3 profit -4.4%, and joined the top 6 retailers with lowered sales forecasts.
Transports, then retailers, then industrials....The bad news on higher revenue +9.3%, which includes credit card payments.
Target also said it will buy as much as $10 billion of its stock, which lost 24% of its value since reaching a record in July.
Barney Frank's Bailout, FHLMC short on cash...
Today, Freddie Mac, the 2nd largest U.S. mortgage company, posted a record $2 Billion loss and warned of a possible 50% cut in the dividend and the need for additional capital.
Freddie had mark to market losses totaling $2.7 billion for the quarter. For the same period last year, Freddie Mac recorded mark to market losses of $1.5 billion.
For Q3, Freddie provided $1.2 billion for credit losses vs $112 Million a year ago, and reduced the value of assets by $3.6 billion. The Q3 loss was almost triple the $715 million a year earlier.
A slump in the value of mortgages shrunk FHLMC core capital by $1.5 Billion to $34.6 Billion vs $36.1 Billion last year, only $600 million in excess of the 30% regulatory requirements.
FYI: FNMA capital in excess of its current minimum regulatory requirement fell by $1.2 billion from June 30 to $600 million on Sept. 30 as Q3 net loss more than doubled to $1.39 billion.
September 30th, Freddie Mac's unpaid principal balance on portfolio $713 billion, on October 31st, shrinking to $703 billion. $10 Billion up in smoke in only a month.
Year to date, the percentage of interest only loans doubled to 9% and seriously delinquent loans went from $6.9 Billion to $10.6 Billion, a 53% increase.
The Nattering One muses... By hook or crook, no pun intended...
Congress wants FHA, FNMA & FHLMC to increase their loan limits and refi or buy more delinquent and subprime loans.
Fannie & Freddie own or guarantee 40% of the $11.5 trillion U.S. home loan market, and have lost $41 billion in market value this year.
Relax, Freddie has hired Goldman Sachs and Lehman Brothers as financial advisors to help it consider very near term capital raising alternatives.
And we all know how well these guys are doing with their financial chicanery of late...
Yeah, Barney Frank wants the GSE's to raise loan limits, and buy more of these toxic loans to bail out Wall Street and the lenders, great idea?
Does it get any better? Lets buy the fraudulent loans back...
FHLMC and FNMA were previously subpoenaed in regard to their involvement in artificially inflating appraisals that would produce larger mortgages for customers.
Enhanced cash fund bailouts...
Enhanced cash funds which hold about $850 billion in assets in the U.S., are sold to wealthy investors and institutions as an alternative to money market funds.
Bear Stearns Enhanced Income Fund has slipped below its $1 net asset value, trading at 99 cents on the dollar.
General Electric Co.'s GEAM Trust Enhanced Cash Trust, an enhanced cash fund, returned $600 million to investors at 96 cents on the dollar.
Today, joining Legg Mason, SEI Investments, SunTrust Banks and B of A...
Federated Investors, the 3rd largest manager of money market accounts in the U.S., bailed out its Enhanced Reserve cash fund.
The 1st to bailout its funds, B of A, said it may provide as much as $600 million to money funds and institutional cash funds that have been hurt by bad debt.
Even the Tax Man...
Citigroup and Merrill Lynch ousted their CEOs. Today, H&R Block, the biggest U.S. tax preparer, replaced Chairman and Chief Executive Officer Mark Ernst...
After $1 billion of losses tied to the collapse of the subprime mortgage market. HR Block owns Option One, which ranked as the 6th largest U.S. subprime home lender. Hattip to Bloomberg.
Comments