In the business section of the Miami Herald today they reported that Bankunited stock fell from $27 in January to about $11 this past week. The banks claims they have been conservative in their lending and did not participate in subprime loans.
Why did their stock plummet? Were they lying about their lending practices?
According to County records they own three condos by Certificate of Title (foreclosure):
19380 Collins Avenue
2600 Island Blvd.
17555 Collins Avenue
All transfers of ownership were in 2007.
I have to say this bank did seem cautious. On Condo 809 they gave a $297,000 mortgage on a $350,000 condo. On unit 202, that sold for $470,000 in 2005, they gave a mortgage of $376,000. However somehow this investment company got a second mortgage for $234,000 against this property a few months later. I could not find the third corporate owned unit.
In any event, this bank did not seem particularly reckless from public records, surely not as reckless as other lenders that own hundreds of properties in Miami Dade County. See my previous post: New Breed of Homeowners in Miami: LENDERS!
The stock drop is troubling. Maybe I should buy some stock in this bank...could it just be "guilty by association"? Any opinions?
2 comments:
It seems the stock market is sending a very strong opinion: there is a failure of confidence in how major US banks are managing their assets, leading to questions about the integrity of individual banks and the regulatory authority that is supposed to give investors a clear picture of risk.
I can't speak to BankUnited, or for that matter, the host of Florida banks that popped up during the building boom with billions in deposits and assets. But investors should certainly demand transparency, given public disclosures that even money market funds may have exposure to the mortgage derivative mess.
its a very solid buy at anything under 13/14 range. This stck could get back to 17-18 by years end. Guilty by association is right on the money,
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