2008-01-15 — centredaily.com
``Non-accrual single family loans at December 31, 2007 rose to approximately $180 million, from $83 million at September 30, 2007, while single family loans thirty to eighty-nine days delinquent rose to approximately $237 million, from $72 million at September 30, 2007. Adjustable rate mortgages that have reached their maximum allowable negative amortization, which now require an increased payment, are a contributing factor in the higher level of delinquent loans.''
This is a "prime" company. Yet we note that that rate of growth in non-accruing loans and delinquencies is in one quarter, not a year. That is a staggering rate of deterioration. Interestingly, the press release is quite candid on why this is happening: throw your pay option loan reset charts away; the breakdown is happening ahead of schedule.
With this kind of obvious financial train-wreck, we have to wonder if some of the old S&L crisis rats simply moved on to the FirstFed ship. If we could still get any shares of this bank to sell short, we would do so.
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