Australian sub prime mortgage market.

Fact is the US sub prime market is on the ropes.Could it happen in Australia,well it is happening word around is a couple of sub prime wholesale lenders are in trouble and income loss is outweighing profit.Golden rule was always 66.6% lend as a max to sub borrowers,now some of these lenders are/were lending up to 95%.

 

That's some crazy shiit hey Rob

 

even at 80% a loss will occur in most cases,keeping in mind the repo's happen most in outer areas.

 

hedge funds are crashing in the US ... not regulated well enough ??

 

meh, don't own nuthin, don't lose nuthin.

 

A rather scary Video that I have posted elsewhere:

http://youtube.com/watch?v=rOVXh4xM-Ww

 

over 2 minutes and very boring, but i'm interested in the dynamic camerawerk, was it directed by the guy who did Bourne Supremacy?

edit: LOL, please watch from the 2 minute point, the bald guy goes nuts!!!!

 

the next "related" vid linked... is that rob's rolls royce broken down in the background?

---> http://youtube.com/watch?v=c7e9H4zTqk4

 

you missed his point as did the PC bint who was talking crap

 

there are IMO 2 sub prime lenders that will go under here.

 

what is happening in the US with trailer parks etc really has little affect on aussie companies . OS hedge funds are going crazy for no reason with aussie shares . cheap stock out there right now , buy buy buy . maq bank should be $120 in 12 months ( hope i don't eat my words ) , now it's $72 , get on it !

 

agree with Maq bank,mate works in the million dollar club and he has got a big smile on his face,just bought his wife a AMG V12 S series Benz.

 

Is there a minimum 'buy in' for these scuddy?

 

plenty of good stocks out there like BHP , ASX , RIO etc .

 

You can bet that Macq will be a lot more if for no other reason than it is empirically quite provable that where Bonuses are tied to share price you can expect another upswing in price like this years as the reporting period comes around.

 

Forget the sub-prime, what about the ordinary mortgage belt? Little stat buried in the news last week was that claims on mortgage insurance last year were up 300%... This is just presage to defaults which I believe are also currently up but I forget the rate.

 

Probably true but nowhere near the disaster that is unfolding in the US........valuers here have been **** scared of the Banks for years!

 

Biggest difference between US and here (and Oz) is the way a lot of these mortgages were sold. Timeshare style seminars selling overpriced stock to pressured 'investors'. Doesn't happen here. Most sub-prime lenders who manage their book well do very nicely thank you. Rememeber the average life of the mortgage is less than 36 months (in UK its around 26) so the window is quite small. GMAC in the UK cover the whole range from squeaky clean low rate to high risk 'right to buy' (thats people buying their council property, often with adverse credit and unable to prove all income) The best performing books are the latter, there's little profit in prime business anyway and so when that starts to go wrong it doesn't take long to dip into loss. Repo's are up all over the place as are mortgage insurance claims. Most claims are in the 90 to 100% lending bracket and few sub prime players are in that market. My take anyway....just back from 5 hours driving the car in the rain and sun, rain and sun..fantastic! Just got to clean it now!

 

and 2 of them will fall over in the next year or so,feel sorry for the retail brokers whom earn there income and on going trails,business worth somthing then next worth zip.

 

The sub prime sector in Australia is a much smaller percentage of the overall mortgage market compared to the USA. The delinquency rates are also much lower in Australia so there is no apparent "crisis" happening here as there is in the US.

 

smaller yes,but plenty of defaults,high Lend value ratios and as I said 2 will fall over,still talking companies with Billions of $s in loans.

 

biggest here so far is Bridgecorp which seems to have failed due to malpractice and two huge loans going south. this has caused a problem for finance companies who rely on the public for funds. recently had a deal in place for $4.5 mill and it fell over cos the lender ran short of funds!

 

over the years here plenty of private lenders have gone down.I feel sorry for the mum and dads whom invest.

 

Yup, I have bought a lot of stock this week.

 

me too,super is powering along,can't wait till I hit 50yo next year,roll on 2012.