To All HMIC Business Partners,
It is with deep regret that we announce Harbourton Mortgage Investment Corporation will cease operations effective the close of business today, December 20th, 2006.
We are extremely proud to have had the opportunity to serve our Brokers, Investors and Business Partners and wish everyone much success in the future. Provided below are areas of contact:
HMIC
Here is their last Press Release on Dec 8, 2006:
Harbourton Capital Group, Inc. ("Harbourton" or the "Company") (OTC:HBTC) today reported a loss of $3.6 million, or $0.71 per common share, for the three months ended September 30, 2006, compared with net income after tax of $42,977, or $0.01 per common share, for the comparable period in 2005. The loss for the nine months ended September 30, 2006 was $7.3 million, or $1.45 per common share, compared with net income of $621,899, or $0.11 per common share, for the comparable 2005 period. There were 5,061,375 shares of common stock outstanding during the three and nine months ended September 30, 2006 and 2005. Common shareholders' equity at September 30, 2006 was $17.7 million, with a corresponding book value of $3.49 per common share, as compared with $25.0 million at December 31, 2005, or $4.93 per common share.
The Company completed the acquisition of Molton Allen Williams Mortgage Company, LLC ("MAW"), headquartered in Fairfax, Virginia on August 31, 2006. In connection with the acquisition, the Company issued $2.1 million in preferred stock and a note payable in the amount of $300,000. The assets and liabilities acquired in the MAW transaction were contributed to the Company's wholly owned subsidiary Harbourton Mortgage Investment Corporation ("HMIC"), increasing the capital position of HMIC. The transaction was recorded using purchase accounting and accordingly the results for the quarter ended September 30, 2006 include the results of operations for HMIC only for July and August and the consolidated results of both HMIC and MAW operations for the month of September.
Sunday, December 24, 2006
Another One Goes Out of Business
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The Company's results for the quarter were again negatively impacted by HMIC, the Company's wholesale mortgage subsidiary. For the quarter ended September 30, 2006, HMIC recorded a provision for losses of $954,000 in response to a significant increase in the loans sold to investors that experienced an early payment default, under which HMIC may have liability to the investor. HMIC recorded a loss for the quarter ended September 30 of $1.19 million excluding the provision for losses and approximately $260,000 of one time expenses directly related to the MAW acquisition.
Harbourton is a holding company comprising two financial businesses, mezzanine lending conducted by the HFC subsidiary and mortgage banking by HMIC. HFC's primary business is originating loans to builders and developers of residential projects. The loans include financing for acquisition, development and construction of residential single-family homes, townhouses, and condominiums. HMIC's primary business consists of originating and purchasing both conforming and non-conforming mortgage loans and the subsequent sale of these loans servicing released to investors in the secondary market.
I love it these false mortgage companies screwing the American Public are biting the dust. I just hope formal investigations are launched on a massive scale and the fraud is uncovered to its full extent.
As for the lowly loan officer, I hope you and all your cronies get to spend a few years in the big house.
Subprime crooks. Hang all of them.
Perfect Storm
What I like is that how different this downturn is from the last when a closure of any banking or lending institution would garner massive national attention.
Now, Ownit closes up shop, thousands are tossed under the bus and NOBODY CARES. Why? Because the only fallout is employment-related - not financial. A couple thousand unemployed gen y'ers and x'ers is something NOBODY CARES about in a full-employment economy.
Defaults? NOBODY CARES since MBS risk is so widespread and priced to absorb huge losses in the subprime tranches, where the vast majority of FB's are getting crushed. A couple thousand gen y and gen x FB's is something NOBODY CARES about in a forclosure market which still FAR below normal and almost exclusively confined to the young and the stupid.
An economy smoking along with low unemployment, loose lending, massive liquidity, low foreclosures, a raging equities market, and 8 out of 10 sectors hitting on all cylinders will scarcely notice some idiotic young Californians living back in rentals and eating cat food because they bought a $900k shitbox in bumfuck Bakingfield.
kook-
This is only the beginning of the pain for the REIC. Major cities woll fair much worse than Bakersfield. One area, IMO, will be the hardest hit - The OC. That area is the sub prime loose lending capital of the free world.
Major cities ARE faring worse than Bakofield RIGHT NOW. Ever heard of Boston, Washing DC, No. Virginia, parts of So. Florida?
Been happening for the better part of a year. NOBODY CARES. The crash you are waiting for requires MASSIVE unemployment followed by MASSIVE foreclosures, and that AINT happening in this SMOKING economy unless HOUSING and HOUSING ALONE causes the above.
You are banking on a HOUSING LED RECESSION. Nothing wrong with that. It might even happen. But so far it hasn't and even notorious PERMABEARS are now conceding that '07 is highly unlikely to see a recession.
'06 was going to be the reset nuclear winter that turned the entire nation into a dead zone. Now it's '07. Or maybe '08.
Inventory? Normal to mildly high. NOBODY CARES.
Prices flat or slightly down? Pfft. NOBODY CARES.
The young'un who bought in '06 and has to sell in '07 is gonna get hurt, and NOBODY CARES.
If you're looking for the market to tank 30, 40, 50% you'll want to keep you eye on UNEMPLOYMENT and FORECLOSURES.
You will need the market to tank way more than last time, so you will need the current market:
http://i12.photobucket.com/albums/a216/Pixbucket/SoCalRe2006-11PriceSmall.png
to become much worse than this:
http://i12.photobucket.com/albums/a216/Pixbucket/90sbustreal.jpg
And all this needs to happen during a hot economy where the vast majority are out making money instead of trembling over housing data minutia.
GOOD LUCK!
kook - aka nut job-
Then gobble up every thing insight and good luck to you.
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