Posted To: The Garrett Watts Report

We asked you last week what your losses averaged on repurchases, and we got quite a few responses. Here is one: “A performing repurchase due to underwriting errors that can be refinanced into a new loan will cost about $10,000. A Non-performing repurchase that was originated in the last 12 months costs about 30 points to sell to a scratch and dent desk. A Non-performing repurchase that was originated over 12 months ago will cost 50 points as the value has most likely dropped 20% since original purchase on top of the 30 point discount in the scratch and dent market.” We’ll show you some more the next few weeks. Here are how some selected financial stocks fared last month. Cathay General ( CATY ): +19.2% Washington Fed ( WFSL ): -1.7% City National ( CYN ): +11.9% MasterCard...(read more)