Using Veritas to Construct the "Per…

29-04-2017 Hits:88628 BoomBustBlog Reggie Middleton

Using Veritas to Construct the "Perfect" Digital Investment Portfolio" & How to Value "Hard to Value" tokens, Pt 1

The golden grail of investing is to find that investable asset that provides the greatest reward with the least risk. Alas, despite how commonsensical that precept seems to be, many...

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The Veritas 2017 Token Offering Summary …

15-04-2017 Hits:82307 BoomBustBlog Reggie Middleton

The Veritas 2017 Token Offering Summary Available For Download and Sharing

The Veritas Offering Summary is now available for download, which packs all the information about Veritas in a single page. A step by step guide to purchasing Veritas can be downloaded here.

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What Happens When the Fund Fee Fight Hit…

10-04-2017 Hits:82197 BoomBustBlog Reggie Middleton

What Happens When the Fund Fee Fight Hits the Blockchain

A hedge fund recently made news by securitizing its LP units as Ethereum-based tokens and selling them as tradeable (thereby liquid) assets. This brings technology to the VC industry that...

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Veritaseum: The ICO That's Ushering in t…

07-04-2017 Hits:86695 BoomBustBlog Reggie Middleton

Veritaseum: The ICO That's Ushering in the Era of P2P Capital Markets

Veritaseum is in the process of building peer-to-peer capital markets that enable financial and value market participants to deal directly with each other on a counterparty risk-free basis in lieu...

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This Is Ground Zero for the 2017 Veritas…

03-04-2017 Hits:83117 BoomBustBlog Reggie Middleton

This Is Ground Zero for the 2017 Veritas Offering. Are You Ready to Get Your Key to the P2P Capital Markets?

This is the link to the Veritas Crowdsale landing page. Here is where you will be able to buy the Veritas ICO when it is launched in mid-April. Below, please...

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What is the Value Proposition For Verita…

01-04-2017 Hits:85239 BoomBustBlog Reggie Middleton

What is the Value Proposition For Veritas, Veritaseum's Software Token?

 A YouTube commenter asked a very good question that we will like to take some time to answer. The question was, verbatim: I've watched your video and gone through the slides. The exchange...

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This Real Estate Bubble, Like Some Relat…

28-03-2017 Hits:56345 BoomBustBlog Reggie Middleton

This Real Estate Bubble, Like Some Relationships, Is Complicated...

CNBC reports US home prices rise 5.9 percent to 31-month high in January according to S&P CoreLogic Case-Shiller. This puts the 20 city index close to an all time high, including...

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Bloomberg Chimes In With My Warnings As …

28-03-2017 Hits:84586 BoomBustBlog Reggie Middleton

Bloomberg Chimes In With My Warnings As Landlords Offer First Time Ever Concessions to Retail Renters

Over the last quarter I've been warning about the significant weakness in retailers and the retail real estate that most occupy (links supplied below). Now, Bloomberg reports: Manhattan Landlords Are Offering...

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Our Apple Analysis This Week - This Comp…

27-03-2017 Hits:84278 BoomBustBlog Reggie Middleton

Our Apple Analysis This Week - This Company Is Not What Most Think It IS

We will releasing our Apple forensic analysis and valuation this week for subscribers (click here to subscribe - lowest tier is the same as a Netflix subscription). As can be...

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The Country's First Newly Elected Lame D…

27-03-2017 Hits:84134 BoomBustBlog Reggie Middleton

The Country's First Newly Elected Lame Duck President Will Cause Massive Reversal Of Speculative Gains

Note: Subscribers should reference  the paywall material here for stocks that should give a good risk/reward scenario for bearish trades. The Trump administration's legislative outlook is effectively a political desert, with...

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Sears Finally Throws In The Towel Exactl…

22-03-2017 Hits:90639 BoomBustBlog Reggie Middleton

Sears Finally Throws In The Towel Exactly When I Predicted "has ‘substantial doubt’ about its future"

My prediction of Sears collapsing once interest rates started ticking upwards was absolutely on point.

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The Transformation of Television in Amer…

21-03-2017 Hits:88202 BoomBustBlog Reggie Middleton

The Transformation of Television in America and Worldwide

TV has changed more in the past 10 years than it has since it's inception nearly 100 years ago This change is profound, and the primary benefactors look and act...

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Centex and Beazer show evidence of credit crunch dismantling their business models

Beazer has finally received a notice of default on their senior notes, to be considered an event of default in 60 days if not cured. This came about as a result of their failure o file their quarterly report with the SEC, due to an internal investigation of their ex-CFO's accounting practices. I have serious doubts about this company as an ongoing concern. Centex has opened a new warehouse credit line to fund their mortgages since their special purpose funding vehicle can no longer roll over asset backed paper in the commercial paper market, and more importantly (and an assumption on my part) are unable to reliably stand as an investment grade counterparty in their swap agreements. This new credit line is much more expensive to Centex, only funds conforming style mortgages (meaning only a mere portion of the volume of their previous deals get done), and commits them to repurchase the loans back from the bank, on demand. So basically, this is only short term financing that cannot be held passed a specific time period.

 

 
Form 8-K for CENTEX CORP


 

 

7-Sep-2007

Other Events

Item 8.01 Other Events.
On August 31, 2007, CTX Mortgage Company, LLC, a Delaware limited liability company ("CTX Mortgage") and an indirect wholly-owned subsidiary of Centex Corporation, a Nevada corporation ("Centex"), entered into a committed bank mortgage warehouse credit facility (the "Warehouse Facility") with JPMorgan Chase Bank (collectively with other banks that may become parties thereto as buyers, the "Banks") in order to provide financing for mortgage loans originated by CTX Mortgage in the ordinary course of its mortgage finance business. The Warehouse Facility provides for, among other things, the sale by CTX Mortgage to the Banks, on a revolving basis, of mortgage loans with associated borrowings of up to an aggregate of $450 million. Such loans will generally be repurchased by CTX Mortgage on a specified date or on demand and will then be resold by CTX Mortgage to third parties. The facility has an accordion feature under which, subject to the successful syndication of additional committed capacity, the Banks may extend up to an additional $550 million of borrowings on mortgage loans on the same terms. Mortgage loans eligible for sale by CTX Mortgage under the Warehouse Facility are conforming loans, FHA/VA-eligible loans and jumbo loans meeting conforming underwriting guidelines except as to the size of the loan. For financial accounting purposes, borrowings under the Warehouse Facility will constitute short-term debt obligations of CTX Mortgage, and will be consolidated on Centex's financial statements. The Warehouse Facility renews and increases a similar $200 million warehouse credit facility that expired in August 2007. The Warehouse Facility contains various affirmative and negative covenants, representations, warranties and events of default or termination of a type generally customary for facilities of this type. In addition to the new Warehouse Facility, CTX Mortgage has a $200 million committed warehouse financing facility with another lender.
Until recently, CTX Mortgage funded the origination of mortgage loans predominantly through the sale of loans to Harwood Street Funding I, LLC ("HSF-I"), a special purpose entity. Under the HSF-I facility, HSF-I generally obtained the funds needed to purchase eligible mortgage loans from CTX Mortgage by issuing short-term securities. In mid-2007, the credit markets experienced disruption and a curtailment of liquidity. For a discussion of certain market conditions affecting our ability to finance our mortgage operations, please see the risk factors contained in our periodic reports on Form 10-K and 10-Q. As a result of the more recent market conditions affecting mortgage-backed loans, which worsened significantly in August 2007, beginning in August 2007, CTX Mortgage realized that it may not be able to rely on asset-backed funding vehicles, such as HSF-I, for its primary mortgage funding needs. In order to diversify its capital sources and provide additional liquidity, CTX Mortgage has elected to increase the amount of available warehouse credit lines by entering into the renewed Warehouse Facility. CTX Mortgage may seek to enter into additional mortgage warehouse facilities with other lenders. CTX Mortgage reduced the maximum amount of debt that HSF-I can issue from $3.0 billion to $1.5 billion. Further use of HSF-I will depend on market conditions.