every newspaper keeps talking about how bad the condo market is, but how come only 4 of their 160+ plus loans have issuesi dont get this at all
It was 60% of market value at peak and 80-90% of cost. Price declines and carrying costs mean huge losses now.
ASSHOLEgo read their 10kit says if their loan goes bad, they will not hesitate to foreclose...and they also say they are safe as most of their loans are 60% of the total value of the property do u get it asshole?
and the 85-90% does not include the mezz loans that they made on a number of their loans. those were separate. if you add those in, some of their projects are being financed at 100%. the mezz loans total about $200 million.
They will. It takes two years to build them, then another year to find out there are no buyers. The most that go bad were started in the peak year of 2005, lots of 2006s and some 2004s too.Actually its a lot more than 4. Problem loans totaled $450 million on 3/31/07, 12% of outstandings.
when do u really expect them to substantially increase their loan reserves..i dont know what event per GAAP triggers them to increase their reservesobviosuly, the historic loan recovery factors(which is good in this case) is one of influencesSodo you expect them to have the current extremely low loan reserves to continue or you are expecting a near term(next few quarters) big increase in loan loss reserveanybody that knows GAAP guideline on this will know
"Problem loans totaled $450 million on 3/31/07, 12% of outstandings. "but they also say that their loans are covered by those properties as they are the senior most lenders in most cases and they only give loan up to 60% of property valueI guess in event of foreclosure they should be ok