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$3.10 0.77 (33.05%)
9/5/2008 4:01 PM

Downey Financial Corp. (DSL)

CAPS Rating:
*

The Company operates as the holding company for Downey Savings and Loan Association, F.A. that provides financial services to individual and corporate customers and engages in real estate development activities, primarily in California.

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Avatar iamamartin (99.47) Submitted: 6/18/07 3:51 PM : Underperform Start Price: $68.88 DSL Score: 76.87

Hung by their own words





(taken from their public statements)





$8.6 Billion in Neg Am loans (with negative amortization as of 31 March 2007)





May 31 2006 = 0.23% non performing loans





May 31 2007 = 1.30%





ummmm. That's no so good.





88% of our real estate loans were concentrated and secured by properties located in California, principally in Los Angeles, San Diego, Orange, Santa Clara and Riverside counties;





oooo nasty...





81% of our residential one-to-four unit loans were underwritten based on borrower stated income and asset verification and an additional 9% were underwritten with no verification of either borrower income or assets;





liar liar pants on fire...





and the loans are relatively new and unseasoned, as 5% of our residential one-to-four unit loans were originated in the current quarter, with an additional 29% originated in 2006 and 34% in 2005.





Ugh !








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