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BB&T Corporation Message Board

  • sugarblooie sugarblooie Mar 31, 2008 9:06 PM Flag

    Construction Loans Are Time Bomb

    As of 12/31/05 BBT had $11.94 billion in construction and land development loans. As of 12/31/07 BBT had $19.47 billion. The $7.53 billion in construction and land development loans underwritten in the last 2 years represent commercial and residential construction projects underwritten during the boom years of real estate expansion and are now being finished--just in time for the biggest contraction in real estate values since BBT was created. This portfolio of construction loans is now turning into devalued real estate assets. This means the $7.53 billion might be a 50% write off in 2008. Current loss reserves for BBT are slightly over $1 billion. These construction loans are the bomb that could sink BBT just as sure as sub prime mortgages sank Bear Stearns. Don't say you weren't warned.

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    • Ole smarty, how did you get from under that rock. Would you prefer a 20 - 30 billion writeoff. Must be UNC math

    • "We have avoided the major problems being experienced by many of our competitors, in large part because the industry's ill-advised rush into subprime mortgages and more risky investments IS INCONSISTENT WITH OUR PHILOSOPHY AND VALUES. Even so, the economic downturn has negatively affected our earnings and resulted in higher credit losses."

      "The good news is we have continued to focus on LONG-TERM relationships with clients and markets WE KNOW, LIMITING OUR EXPOSURE to the market risks THAT HAVE TROUBLED MANY OTHER BANKS. Our experienced management team also NAVIGATED PAST CREDIT CYCLES, and we are confident that we will weather this one as well."

      "BBandT's mortgage business has actually benefited from the subprime turmoil because some of the more irrational competitors have gone out of business."

      Annual report 2007

      Sugar, get wormie and numbie a beer would ya.

      • 1 Reply to spoor5t
      • "The good news is we have continued to focus on LONG-TERM relationships with clients and markets WE KNOW, LIMITING OUR EXPOSURE to the market risks THAT HAVE TROUBLED MANY OTHER BANKS. Our experienced management team also NAVIGATED PAST CREDIT CYCLES, and we are confident that we will weather this one as well." HAHAHAHAHAHAHAHAHA. More cut and paste. Its easy to navigate credit cyles when you (a) don't loan money and (b) don't take any risk, which leads to (c) a stagnant company with a stagnant share price. Sound familiar, oh desperate ones? We who know might care if he was talking about long term RETURNS, which are ABSENT from his discussion. Goofy Culture 1st, Execs 2nd, shareholders "last". BB&T down 2.5% - have a nice day! EOT - the happy quueefer signing off. HAHAHAHAHAHAHAHAHAHA Gotham coming to get ya.

    • Great point.....then why would they have raised their dividend again if these major problems are staring them right in the face?

    • oh sugar, I have to say thats the best decision I have seen you make. Agreeing with me, excellent. Again, you make me so very proud!!

      As for hedges, thats what I pay your dad to do. Your mom said you left without paying her for that pop, looks like she is not a very good manager, the owners will have to find a new one. I like my lease income.

      now make sure you clock in tomorrow, i dont want to get a bad report on my sugar!!! hahaha

    • yes, i'm agreeing with you, you should be long a portfolio of residential mortgages, good investment, stock up on the stock. you're a genius, you really know how to assess value and you think through your investments.

      also, do you bring your own ladder when you trim the hedges? you can use mine. just don't block me in when you park your pickup. and make sure you clean up the twigs. thx, sorry about you losing your job at applebee's i understand it's tough out there.

    • " (with my additions)by golly, you're right! all (BAC, Citi, Countrywide, RF, STI, WB, et al), BB&T has to do is prove that the mortgage is first lien, not have any other indebtedness like a car loan or home equity loan to the same customer (that invalidates the primary credit under FL law), have the mortgage written so that the homestead law is clearly waived, wait 120 days until mortgage is arrears, file a complaint, wait for a court date,provide discovery on full documentation, get a court order, rebut the appeal, get another court date, get another court order, then find the sherriff and oust the occupant, then list the house, then find a buyer and provide a mortgage to that credit worthy individual, then get cash. And I'm sure that cash will cover the mortgage plus broker's fee plus attorney's fees plus court fees plus back taxes plus accrued interest! What a good investment those FL mortgages are!"

    • oh sugar, there you go again getting mad. Thats right, if its a valid mortgage on the primary residence a foreclosure can happen. Sounds like you know the routine pretty good????
      Do you really think a bank would make mortgage loans that they couldnt foreclose on if needed????

      Keep up the outstanding work sugar! Still so proud of you!

    • by golly, you're right! all BBT has to do is prove that the mortgage is first lien, not have any other indebtedness like a car loan or home equity loan to the same customer (that invalidates the primary credit under FL law), have the mortgage written so that the homestead law is clearly waived, wait 120 days until mortgage is arrears, file a complaint, wait for a court date,provide discovery on full documentation, get a court order, rebut the appeal, get another court date, get another court order, then find the sherriff and oust the occupant, then list the house, then find a buyer and provide a mortgage to that credit worthy individual, then get cash. And I'm sure that cash will cover the mortgage plus broker's fee plus attorney's fees plus court fees plus back taxes plus accrued interest! What a good investment those FL mortgages are!

    • Ahhhhh common sense, if only it was STIL around in abundance

    • Oh sugar, do some more of your research on the homestead states. That exemption doesnt apply if the home is secured by a mortgage. The bank goes to court, gets the ok, and forecloses on the property if need be.
      It does protect the home from other non-mortgage creditors.

      Keep up the good work, I am proud of you!

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37.02-0.62(-1.65%)Jul 31 4:01 PMEDT

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