OK, so this company has plenty of mortgage exposure and their loan loss provision is viewed as being too small. If prices continue to drop, and I think they will, loss provisions may increase. How much further can it drop though? It is trading at a P/E of 3.6 and a p/b of 0.33. Other things of note:
-No subprime exposure
-Zero document loans have a FICO of 720
-weighted average FICO of all mortgage exposure is over 700
-60% of loan portfolio is either full document or stated income and verified assets
It may not be a day traders stock, but it is worth taking a look at.
$7.67 (11/06/07)
