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Well maybe it is not a glitch. OTCBB.com should be most up to date and you are right RFNS says not valid?? We may indeed be delisted or worse.
wodehouse I think it is a glitch. My Etrade account still indicates RFNS under OTC.BB.
Jds sorry I doubted you. I am just a natural born skeptic especially when it comes to posts on boards. Good work on drumming up the Salary info...
I am still optimistic that Reliant has a chance to turn things around.
Jds where are you getting those numbers from as far as Reliant holding off on 15 million in mortgages or Hamiltons 104,000 salary?? You are appearing more and more like someone just trying to pump this stock and your posts are no longer credible in my eyes. This board is indeed becoming rather entertaining with the pumpers and bashers similar to RB.
Not sure about the other 9% either. However, I did not come across any information from their news releases or from their web-site indicating any sort of connection to the sub-prime mortgage market. Not to say it could not happen in the future. Whatever happened to Brit Insurance? One of the primary reasons I bought into Reliant was because of their network...especially Brit and Centum. Frankly, I might have sold a long time ago if I knew that they no longer had associations with Brit or Centum. It is interesting that the Bank of Montreal discontinued their involvement in the Sub-prime market just before the market collapsed. I found that odd at the time and wondered if that was a bad sign rather than it being a good sign for Reliant, but continued on with Reliant anyway being overly optimistic. Oh well, I can't go back in time and whatever happens with Reliant will prove to be either a good or bad learning experience in many ways. I guess I will hold out until the end of the year and if things are still not looking good...I will jump ship and write it off on my 2007 taxes.
It does not appear that PMI Canada insures sub-prime loans...especially loans with lower than 95% LTV ratios in the U.S. Their press release last week describes their portfolio:
Steve Smith, CEO of The PMI Group, Inc., said, "Our U.S. and Australian portfolios are focused primarily in core housing, meaning single family homes that are owner-occupied, and are geographically well diversified, respectively, across the U.S. and Australian states."
David Katkov, President of PMI Mortgage Insurance Co., PMI's U.S. subsidiary, explained, "The current market environment has resulted in some positive demand-related trends for PMI. Alternative loan products have lost much of their luster, the GSEs have increased their market share, and tax deductibility has sparked renewed interest in mortgage insurance. As a result, we're seeing an increased demand for our product, including insurance for loans with a loan-to-value above 95 percent. As a whole our portfolio continues to be focused on loans of modest size to individuals and families who are purchasing homes they plan to live in, and we remain committed to sustainable homeownership. In the long run we believe this increased demand will be a strong positive for PMI and the mortgage insurance industry."
General Characteristics of PMI's U.S. Mortgage Insurance Portfolio as of June 30, 2007:
Prime loans (credit scores of 620 and above) represent 91 percent of primary risk in force.
Fixed rate loans account for 84 percent of primary risk in force.
Approximately 88 percent of loans are for primary residences.
Average primary loan size is $148,700.
The portfolio is well diversified across all 50 states.
press release from last week describes their portfolio:
110 million shares outstanding now showing for Reliant within my Etrade charting/research section. It used to be 98 million.
I hope Reliant is not diluting...
JDS,
I am sure most of us would love to believe your email sent and the response back from Steve Hamilton about a positive press release in 2 weeks...however, in light of current events and for obvious reasons, I think most of us will view that with natural skepticism. Don't mean to doubt you...but it seems to be getting harder sifting out the real info from the fantasy with this stock. I hope it is true, but not counting on it.
WOW! CPNLQ.PK is a great example of what some pinks can do. That is definitely a rarity though. I think what has helped this company is it once was a monster and even though it filed for Chapter 11...it still had a good infrastructure and contact base...which allowed for its resurrection. Those are actually the pinks I might dabble with...the others...which are start up companies we don't know jack about are almost always the money pits.
Reliant is going to have to prove itself to pull us back into the low teens...otherwise...we will wallow below .04 until the sun burns out or Reliant belly flops. I just hope Reliant does not get delisted from the OTC and placed into the pinks. Very real possibility if Relaint continues to accumulate debt without Revenue. If that happens you can kiss whatever money you have left in Reliant goodbye. MM's are absolutely ruthless in the pinks with their spreads. Getting back to the OTC from the Pinks can take years. This would be as bad as Reliant belly flopping.
Might as well sit back and relax because it will likely be quite awhile before we know whether Reliant can actually make a comeback from near extinction or Reliant becomes extinct.
What we need is Warren to invest a little cash into Reliant.
Steve Hamiton should try to give Mr. Buffett a ring to see if he is interested. Very long shot but what the heck....Warren is a practical kind of guy and I bet he would listen to you for a minute anyway.
Don't sell Reliant yet...Mr. Buffett is looking into buying part of Countrywide. Evidently Warren sees some light at the end of the Sub-prime tunnel and that light may eventually shine upon us.
Reuters
Buffett could buy parts of Countrywide: report
Monday August 20, 10:42 pm ET
NEW YORK (Reuters) - Billionaire investor Warren Buffett may buy parts of beleaguered mortgage lender Countrywide Financial Corp (NYSE:CFC - News), some investors are speculating, according to The Wall Street Journal.
ADVERTISEMENT
Countrywide's debt-servicing business and its portfolio of mortgages and mortgage-backed securities may be attractive to Buffett, the Journal reported on its Web site on Monday, citing unnamed investors.
Like many mortgage lenders, Countrywide has struggled with rising delinquencies and foreclosures, and an unwillingness among bankers to extend credit, and among investors to buy the loans it makes.
Countrywide, which is being closely monitored by U.S. regulators, sought to reassure investors earlier on Monday that it is safe to do business with the company.
Buffett has been increasing his stake in financial services companies, including those with significant exposure to the mortgage market.
Earlier this month, Buffett's investment company Berkshire Hathaway Inc (NYSE:BRK-A - News; NYSE:BRK-B - News) disclosed an investment in Bank of America Corp (NYSE:BAC - News), one of the six largest U.S. mortgage lenders, in a regulatory filing.
Berkshire is also a long-time shareholder in Wells Fargo & Co (NYSE:WFC - News), the second largest U.S. mortgage lender after Countrywide.
Wells Fargo has largely been spared the subprime mortgage-related woes afflicting smaller rivals, helped by its conservative underwriting standards.
Buffett told TV network CNBC last week that the worsening credit and housing markets may present some "real" investment opportunities.
Berkshire officials were not immediately available for comment. Buffett does not discuss what Berkshire is presently buying and selling.
(Reporting by Anupreeta Das and Jonathan Stempel; editing by Louise Heavens)
On another positive note...and there is not many at this point...the feds will likely cut the interest rate again by another 1/2 point. Decreasing interest rates should start to extinguish the firestorm of foreclosures...making mortage payment more affordable. If the sub-prime fallout starts to improve here in the US and the demand for these types of loans still subsists, I think there will be less jitters by insurance companies to step up and insure these sub-prime loans. Frankly,
if there is potential for money to be made and there is enough demand within the sub-prime Candian Sector, someone is bound to eventually step up to the plate...especially with a strong insurance wrap backing the loan pool. What's happening now is forcing major policy changes in the way Sub-prime loans originated, financed and sold. I have no doubt there will come a day when a new crop of sub-prime companies arise and prosper from the sweeping changes that are taking place now.
If Reliant can somehow hold it together thorough these changes...they still have a chance. If things don't improve and they can't find someone to insure their loan pools within the next 4-6 months...Reliant will likely declare bankruptcy.
Ouch! This one hurts. It is a shame that Reliant's launch and the Sub-Prime fiasco happened to occur together. Otherwise I bet things may have turned out differently. Selling at this point is pointless. Might as well wait and see if Reliant can find someone to insure their sub-prime loans or we can get a run up on more promising news. Frankly, it is very bleak and it is going to take a miracle finding someone to insure these loans. On the bright side I guess I can recoup 25% of my 25,000K loss with a tax write off.
I am pretty much done investing in OTC or Pinks. There is too much corruption with the MM's and not enough information from the various companies to make good investment decisions.
GL
The chart is definitely similar to last year, however, the situation is much different now with the Sub-Prime fallout. Exceed's latest news last week indicated funding trouble as the main reason why their stock has nose dived. However, they are well established and have mutiple funding sources and will likely whether the storm.
Reliant no doubt is running into problems as well.
What we need from Reliant now is an honest straightfoward summary of what is presently happening and what Reliants prospects are for continued business. We are all big boys and girls and can take the truth...if they are having problems selling off their Mortgages...just tell us and the reason why. I think you would keep more shareholders on board in the near future with reporting actual business dealings rather than coming out with just more projections while at the same time reporting no Revenue. Of course that is just my opinion which also does not really matter.
I guess we can deduce from that article that Jules Loeb has some pretty good wealth in his family and most likely knows lots of people. Reliant having access to alternative souces of financing is always good. He must of seen something he liked to join Reliant...otherwise why invest the time and money into joining a company if the prospects look that grim. Speculation, speculation, speculation....we need an update and soon.
The only way out of the cellar with one is if Reliant starts generating more significant revenue and soon. I am normally positive but frankly it is looking very bleak for Reliant now. The Sub-Prime fiasco is now affecting world markets and economies including Canada. Reliants sub-prime Candian competitors such as Exceed Mortgage have been hit really hard. Exceed PPS has nose dived over 50% in one month! from 7.45 to now 3.80 pps. It almost looks like they are starting to cave in and belly up. I don't think anyone wants to even touch sub-prime loans right now. The after affects of the sub-prime meltdown are expected to last another 18 months and possibly up to 3 years. We may not have seen the worst yet. I just hope mtcinc0's prediction of a dead mans bounce was not what we saw yesterday.
The only hope is if Reliant can rectify its insurance issues in order to sell off the loans they have closed.
I hope we get some sort of update on what is happening with Reliant before the end of the month. I have a feeling there will be no Revenue for their 2nd quarter 10Q that is late.
I would most definitely think it would hurt the PPS indirectly by making potential new investors more apprehensive about putting money into Reliant.
Frankly, Reliant is going to need turn things around real soon otherwise I don't see how they could continue sustaining operations without any incoming Revenue. I think it's do or die time for Reliant. They are closing loans but if they cannot sell them off...were in trouble.
2nd quarter numbers should be available around Aug 15th...next Weds. 2nd quarter ended June 30th and the 10Q usually comes out 6 weeks later.
I highly doubt they will be reporting any significant Revenue since there has been no PR's that have indicated that any Revenue has been generated. I just hope they come out with some positive projections or a shareholder letter explaining their business plans for the upcoming months, otherwise the PPS is likely to take another nosedive if a 10Q is released with goose eggs.
He uses a software program with lots of pretty colors and graphs. He tried to get me into trading, but I prefer the security of having a paycheck every 2 weeks.
I only have 1 girl phone number to worry about that being my wife. Speaking of which I have not told her how far down I am with Reliant. I dread telling her because I will hear about it for the next decade if Reliant fails succeed. Perhaps I will buy her something nice to soften the assault.
I am Hoping Reliant management somehow makes it work for all our sakes.
I have a buddy of mine that is a self-employed day trader that does exactly these kinds of trades each day. He carries 50-60 stocks and trades in and out of them each day often making only 20 or 30 bucks each trade but green on many. He gets unlimited trades for a certain price each month that amounts to something like $3 a trade. He has a few OTC's but not Reliant. On good days he pulls in 2K but averages $500.
With the rest of the Market taking a hammering today and all the bad news about the US sub-prime sector...it is nice to see Reliant move a little North today. If Reliant could just come out with some pretty good projections and then show a little Revenue generated for the 2nd quarter...I think you would see some significant buying volume and a sharp rise in the PPS to the teens. I think everyone including potential investors are just watching and waiting to see what transpires over the next few months. I think Reliant is at a " make " or " brake " point in their operations. It is tough to outright sell Reliant for me because I still think they have potential. Selling and then seeing Reliant skyrocket would be quite painful to watch.
TheStar.com - Mortgages - How Canada avoids U.S. problemsHow Canada avoids U.S. problems
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Our mortgage insurance provides more protection on high-risk loans
Apr 30, 2007 04:30 AM
PAUL BRENT
SPECIAL TO THE STAR
The meltdown of the U.S. subprime mortgage market has many Canadians wondering if the carnage will make its way north.
While U.S. mortgage defaults continue to soar and subprime lenders succumb to years worth of dubious loans, Canada's mortgage market appears immune to the fallout. It appears Canadian conservativism has insulated us from the excesses of our American cousins.
"The (mortgage) market here is much healthier, the lenders are more prudent in terms of their approval process and Canadians are just more conservative in terms of their products," said Jim Murphy, president of the Canadian Association of Accredited Mortgage Professionals.
"Canadians lock in for longer terms, two-thirds of all mortgages in Canada are for fixed periods, the most common of which is five years."
Subprime mortgages in Canada can be defined generally as those offered when home purchasers do not fit the banks' prime mortgage customer profile. They may include self-employed people or those with insufficient credit history.
Murphy's association, which took the unusual step of issuing a press release to assure the public that Canada is not headed for the same fate as in the U.S., said there are many factors which have made the Canadian mortgage scene "a picture of health."
He said the overall arrears rate on mortgages in Canada remains "at or near record lows" of less than 0.5 per cent.
Canada's market, with the exception of pockets, primarily in Alberta, has not experienced the rapid home-price appreciation or speculative investing that has been endemic in the U.S.
Moreover, this country continues to enjoy strong employment growth, along with comparatively low interest rates and high consumer confidence, the mortgage group said.
"People are talking about (the subprime issue) only because of the attention in the U.S.," Murphy said. "I don't think we have that concern because it is a much smaller percentage of the market and the default rate is lower."
Numbers tell the tale of the two countries. In the U.S., subprime mortgages account for 20 per cent of the market, while here they make up less than 5 per cent, Murphy said.
As a result, the subprime default rate is approximately 2.1 per cent in Canada versus a U.S. default rate for subprime mortgages of 6.8 per cent, according to Xceed Mortgage Corp., a Toronto-based subprime lender which recently reported buoyant profits.
And while the U.S. subprime meltdown is ugly, it pales in comparison with past financial debacles, said Jeffrey Rubin, chief economist at CIBC World Markets.
In an April report, Rubin said losses in the $650 billion (U.S.) subprime market could total more than $100 billion, but are "unlikely to come even close to the savings and loan crisis of the late 1980s, or the dot.com bubble collapse."
The subprime or alternative financing market is growing in Canada, with a number of new lenders entering that space over the past few years. That's a healthy development, said the CAAMP's Murphy.
"These products like interest-only products or longer amortizations of 40 years, they are not best for everybody, but there are segments of the population that somebody should look at."
Subprime mortgage loans have proved popular with self-employed people with up and down incomes and for new immigrants with Canadian credit histories who are able to qualify for subprime products, which charge a higher interest rate than conventional mortgage loans.
One of those lenders is Home Capital Group Inc. of Toronto, whose stock has prospered because of a strong real estate market and a low loan default rate.
Even though it has approximately $4 billion (Canadian) of outstanding loans to subprime customers, its losses from defaults are a tiny fraction of 1 per cent, or about $200,000, said Gerald Soloway, Home Capital's chief executive.
He credits the low rate to a proprietary underwriting system and a Canadian market that insists borrowers put some money down when buying a home.
Mortgage defaults are going to be higher in the U.S. because of excesses such as the offer of artificially low "teaser" interest rates early in the mortgage term, mortgages for 100 per cent or more of the price of the home and aggressive U.S. lenders who covered closing costs to help borrowers move into a new house.
Different tax policies between the two countries also have a role to play, observers said. By allowing home owners to deduct mortgage interest payments from their taxes, the U.S. government has created an incentive for Americans to spend as much as possible on a home.
But the structure provides little incentive to pay those mortgages off.
It is not a coincidence that a 30-year amortization period is the norm in the U.S., compared to roughly 25 years in Canada.
By not allowing people to deduct mortgage interest payments in Canada, the government in effect prompts homeowners to pay off their mortgages as quickly as possible, given that payments are in after-tax dollars.
Another difference is that in Canada, "the vast majority" of low down payment mortgages are insured, said Peter Vukanovich, president of Genworth Financial Canada. A unit of U.S.-based Genworth Financial Inc., the company insures mortgages for lenders whose clients have down payments of less than 25 per cent.
"Our company and other companies are looking at these loans as almost like a second set of eyes," he said.
"I look at it as though I'm insuring that the market stays stable."
Vukanovich chalks up the U.S. mortgage problems to "going too far too fast. [In Canada] we have been able to avoid at least some of these
I am not sure if you can use the terms long term investing with Sub-Prime Mortgages in the same sentence. I think Reliant will need to turn things around fairly quickly ( within next 18 months). The Canadian Sub-Prime as well as Prime sectors is likely to start cooling off in 3-5 years down the road.
Right now there is a 55 billion potential in the Candian Sub-prime sector. Now is the time to start tapping into this huge Revenue potential. There is plenty of wiggle room and then some for Reliant if they can fix their issues. Still have some hope on this one.
That would be nice... Funny how were cheering and the PPS is still 3 ish.
Reliant now up 70%! Go baby go!
Good question? Would like to know as well. Also would like to know why one of the Hamiton's did not step into the top position. I think they are running the company anyway. I don't see LEOB as being a strong addition to this company. However, I could be wrong.
tjwiii good work on this one.
I believe Boyd is being truthful here. The increasing "guarantees" Boyd mentions are probably jitters felt from the US meltdown.
Reliant may be on the right track after all trying to solidfy their loan packages with more complete insurance.
Another area Reliant needs to try and improve is their LTV ratios. Putting the least money down for a mortgage is a big plus for many people. I think Reliant is trying to increase this Ratio to be more competitive.
I don't believe the statement about Reliant not being able to sell loans due to the US meltdown. I just spoke to Exceed Mortgage Canada ( Reliant's main competitor) investors relations Mr. Wertheim acting like I was an interested investor, but worried about the US Sub- Prime meltdown.
He said they are doing very well and having no difficulty closing and selling off their Sub-Prime loans. I asked him why they were not affected and he told me that Canadian Sub-Prime loans " must be insured" before they can sell them off to trusts. In addition, debitors cannot borrow more than 85% of the loan amount known as the LTV ratio ( loan to value ratio).
US sub-prime market did not have these standards and is the main reason why it collapsed as interested rates rose.
Reliant may not be able to sell their loans because they may not have the insurance wrap needed to sell them off.
What ever happed to Brit Insurance????
This is the kind of stuff I don't like...not being informed of more significant changes to their network.
Reliant may have a chance to rebound afterall if they can
get the their insurance issues rectified.
Jersey...Soonergirl had a post a few months ago that had a synopsis report from Clipper she heard over the phone. I think she mentioned they had 3 underwriters.
This new president of Reliant...a virtual unknown figure who is also President of some Holding Company...which in itself is suspect since Family Holding Companies have some asset protection from liabilites and taxes. Wondering if this is the setup for a planned exit from this company by management. At this point all I know is that it would be difficult to trust or believe anything Reliant says from a PR standpoint at this time.
mtc what is your prediction of this thing getting back to 4 or 5?
Never in my wildest dreams either. Frankly, selling at this point would not make much difference when your down 90% on your original investment. This thing may go down even lower to .01's. I don't trade pennies very often, but this has got to be one of the sharpest penny declines in 2 weeks that I have seen. Funny thing is it does not appear that many are trying to sell off yet. Perhaps its because it has declined so fast and most people were blind sided by what has transpired with Reliant.
Don't you have to officially anounce your intention to sell more shares before doing so?
I don't get this PPS. It just keeps dropping as though someone knows something we don't. Feels like I have just been sucker punched in the face then kicked in the balls.
I think the main reason the PPS plummeted over the past week is the MM's somehow got wind of Boyd's resignation on the 23rd which was not officially announced until yesterday.
I don't think the revised projections ( If they were leaked out) would negatively affect the PPS. If anything, they should positively impact the PPS since it indicates the potential for revenue and profits. In anycase, we are going to need something signficant for investors to bite into this one.
Finn thanks for that info.
Finn what did Steve Hamiton tell you?
Trouble is we are going to need some type of real numbers to jump start the PPS. If they do not come out with some type of numbers related PR before the Aug 15th 10Q comes out...we are going to be really hurting. I have a feeling that their 2nd quarter 10Q will not have any Revenue.
Management really needs to throw a bone out their for us. I am barely hanging on with this one now.
Reliant is definitely not going to belly flop at least in the next 6 months. Pretty sure of that.