[olecapt]

Originally Posted by tony soprano

Correct as to direction? This isn't a weather report, it's a very simple question. Do they hold loans on their books that may ultimately foreclose or need to be written down? The answer is yes, billions worth in fact.Again, says you. Someone that just a few posts ago was saying mark to market accounting never existed.

And you continue to misstate what was said. The existance of mark to market accounting issues was never discussed. It was there non existent impact on the Las Vegas market.

You keep ducking. Answer the question was the recent behavior of the REO market driven by mark to market?. I don't believe you think it was either so you keep avoiding the question to debate side semantic issues.

[tony soprano]

Originally Posted by olecapt

And you continue to misstate what was said. The existance of mark to market accounting issues was never discussed. It was there non existent impact on the Las Vegas market.

You keep ducking. Answer the question was the recent behavior of the REO market driven by mark to market?. I don't believe you think it was either so you keep avoiding the question to debate side semantic issues.

I've already answered the question in this thread. I've also quoted others that have a much firmer grasp on the topic than you. To refresh your memory -

Former House Speaker Newt Gingrich released the following statement praising the Financial Accounting Standards Board's (FASB) recommendation to use more flexibility in applying mark-to-market to value illiquid assets in an inactive market.

"FASB deserves enormous credit for acknowledging that the mark-to-market accounting rule exacerbated panic-selling in a downward market. This new guidance is an important step to adding more stability to the market, and fixing the structural problems that prolonged this financial crisis."

Newt was right and they listened: FASB changes mark-to-market rules

Now why don't you mosey on over to a thread that you can contribute to.

[geos]

Originally Posted by RCCCB

Yes, what you are saying is the current crop of Americans are dumber, more self indulgent and less responsible. They would allow laws that take money out of another's wallet if it goes to pay for them. Basic communism...

Au contraire. Basic capitalism. Well connected military contractors can suck at the taxpayers tit like nobody else. And then we have the, "bailouts for billionaires who brought you the financial meltdown Ponzi scheme" program. More billionaires sucking at the taxpayer tit. Capitalism at its finest. Crack moms and prostitutes are peanuts no, chia seeds, compared to them. But of course you won't see F#X news biting the hand that feeds them. The right wing corporate wh@re crowd won't expose the real hookers, pimps & parasites of our society because of course they're sponsored by them.

[olecapt]

Originally Posted by tony soprano

I've already answered the question in this thread. I've also quoted others that have a much firmer grasp on the topic than you. To refresh your memory - Now why don't you mosey on over to a thread that you can contribute to.

Quibble quibble quibble. Hey if you already answered the question just quote your post.

But then the ultimate...Newt Gingrich failed right winger speaking on a different subject.

Talk about Duck...

That is called Duck Duck Duck Duck

[tony soprano]

Originally Posted by olecapt

Quibble quibble quibble. Hey if you already answered the question just quote your post.

But then the ultimate...Newt Gingrich failed right winger speaking on a different subject.

Talk about Duck...

That is called Duck Duck Duck Duck

Readers can decide if they believe a failed right winger or a clairvoyant realtor. Tough choice.

[olecapt]

Originally Posted by tony soprano

Readers can decide if they believe a failed right winger or a clairvoyant realtor. Tough choice.

Newt Gingrich for goodness sake...on the issue of REOs in Las Vegas...

Oh my that really is funny.

Maybe you can get Karl Rove to come in and consult for your purchases...

[Slim10]

Originally Posted by tony soprano

For the quarter just ended, BAC had $1.9B of foreclosed properties on their balance sheet. That number has been relatively stable for a year now. They also have $15.5B of nonperforming residential loans on their balance sheet; defined as greater than 90 days delinquent but not yet foreclosed. That number has more than tripled in the last year. Only time will tell how many of those ultimately end up on the balance sheet as foreclosures, but it's a very healthy pipeline. As a footnote; at the time of their acquisition by BAC, Countrywide held between $80B - $100B worth of loans on their books.

The $ numbers appears a lot but not really when in terms of actual houses.

$1.9b is only 19,000 houses foreclosed countrywide (assuming original loan values at $100k each but likely 1/4 or less that boom times had prop prices avg $400k). Esp since that's not mark to market.

$15.5b is ~40k-160k homes depending on how much each is the avg loan to household.

[tony soprano]

Originally Posted by olecapt

Newt Gingrich for goodness sake...on the issue of REOs in Las Vegas...

Oh my that really is funny.

Maybe you can get Karl Rove to come in and consult for your purchases...

Forest, meet trees. It's Newt Gingrich on the issue of mark to market accounting. Maybe that was just too subtle and nuanced.

"FASB deserves enormous credit for acknowledging that the mark-to-market accounting rule exacerbated panic-selling in a downward market. This new guidance is an important step to adding more stability to the market, and fixing the structural problems that prolonged this financial crisis."

[tony soprano]

Originally Posted by Slim10

The $ numbers appears a lot but not really when in terms of actual houses.

$1.9b is only 19,000 houses foreclosed countrywide (assuming original loan values at $100k each but likely 1/4 or less that boom times had prop prices avg $400k). Esp since that's not mark to market.

Actually, I think when it hits the balance sheet as foreclosed, the loan is written down and marked to market. That's my understanding anyway.

$15.5b is ~40k-160k homes depending on how much each is the avg loan to household.

The $1.9B number is not terribly troubling. As I mentioned, that number has been relatively static for the last 4 quarters. What has changed markedly is the nonperforming residential loans on the books.

Quarter end 9/30/08 - $4.6B
Quarter end 9/30/09 - $15.5B

That's not a happy trend. However, during the conference call they characterized it similarly to the economy in general - not good, but getting worse at a much slower pace.

[Slim10]

Thanks. Even if marked to market, avg house prices in LV are still $160k for SFRs and $80k for Condos and Townhouses so even the $15.5b number seen in that context of housing units is not a significantly large figure.

I agree the trend is troubling but that's really consistent with all other indicators.

LV Unemployment rate Sep 08: 7.7%
LV Unemployment rate Sep 09: 13.9%

Like unemployment, there is a limit to how many homes can be foreclosed (as there is to the number of pple who lose their jobs).

If the correlation is accurate, we're unlikely to see the trend for delinquent loans values continue that much more either in bank b/s. People who lose their jobs are going to lose their houses if they still have loans to service but they won't be losing that every quarter.

And if buyers continue to flock the market like they are now, I agree with views that the boat load isn't as significant as some might think.

It doesn't mean that additional foreclosure are ok. It is not esp those directly affected.