by Calculated Risk on 10/19/2006 02:48:00 PM

On LEND from Bloomberg: Accredited Home Shares Tumble as Lender Cuts Forecast (thanks to everyone that sent me this!)

"Accredited blamed lower-than-expected loan volumes caused by increased competition and fewer products, lower prices being paid for the loans by investors and a decline in returns on the securities created out of them. The San Diego-based company also said greater-than-expected late payments on loans it made in the last two years will cause it to increase reserves."

And on Washington Mutual from Bizjournals: Earnings fall at Washington Mutual

WaMu reported its Home Loan Group lost $33 million during the most recent quarter. That compares to a profit of $302 million in the year-ago third quarter. WaMu attributed the recent quarter's results to fewer home sales and lower gains on sales of loans.

ild listened to the WaMu conference call and noted:

There were two questions about how the Interagency Guidance will affect their business. The response was to downplay any possible negative effect, like "we don't offer bad mortgages", "we are working with the regulators to clarify some issues". In mortgage originations they said that they can't compete with others on hybrid programs. As hybrid loans (5/1, 7/1) are the most popular basically their reply was "we can't compete".

ild noted that WaMu apparently didn't participate in the recent "business at any cost" push, and that means losses now, but possibly less bad news in the future (as compared to less prudent lenders).