RHG - RHG Limited
- Thread starter Gundini
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Re: RHG - Rams Home Loans
My understanding is that is what the mortagage insurance covers.
Thus why mortgage insurance is more expensive the more you borrow. Any loans with less than 20% equity will usually require mortgage insurance in Sydney I do not know about the u.s I do not know how much of the position this mortgage insurance covers i.e if someone borrows 90% does it cover the 10% to take it to 20% equity or anything if the property drops by half..
I think you may find a large % of the loans dont have mortgage insurance due to dodgy brokers and morgage brokers.. Many get there clients around it by increasing the purchase price to include the deposit and giving a payment back to the purchaser then cause the equity is high at 20% the bank does not bother to get a valuation.. I know this was rampant in Sydneys boom and thus the reason you see news paper articles saying ohh the property dropped 40% in value the unit in cabramatta went from 200k to 160k etc.. it was dodgy to start with.. ie home 100k purchaser has 5k (5%) needs 20k 20%dep so as to pay no mortgage insurance developer charges buyer 120k for home and gives them 20k purchaser kicks in 4k bang 20% deposit no valuation and close to 100% finance no morgage insurance for the bank.. and when the owner defaults the property is probably worth 90k as a premium was paid for new and the bank is left with a debt of 30k..
My understanding is that is what the mortagage insurance covers.
Thus why mortgage insurance is more expensive the more you borrow. Any loans with less than 20% equity will usually require mortgage insurance in Sydney I do not know about the u.s I do not know how much of the position this mortgage insurance covers i.e if someone borrows 90% does it cover the 10% to take it to 20% equity or anything if the property drops by half..
I think you may find a large % of the loans dont have mortgage insurance due to dodgy brokers and morgage brokers.. Many get there clients around it by increasing the purchase price to include the deposit and giving a payment back to the purchaser then cause the equity is high at 20% the bank does not bother to get a valuation.. I know this was rampant in Sydneys boom and thus the reason you see news paper articles saying ohh the property dropped 40% in value the unit in cabramatta went from 200k to 160k etc.. it was dodgy to start with.. ie home 100k purchaser has 5k (5%) needs 20k 20%dep so as to pay no mortgage insurance developer charges buyer 120k for home and gives them 20k purchaser kicks in 4k bang 20% deposit no valuation and close to 100% finance no morgage insurance for the bank.. and when the owner defaults the property is probably worth 90k as a premium was paid for new and the bank is left with a debt of 30k..
Re: RHG - Rams Home Loans
is it me, or
does this sudden drop in price is due to westpac reaching an agreement to buy the rams brand and franchise?
look rhg share price dropped by 50% in 3 days. This sudden drop is due primarily to people selling to fear beause of the fact that
1) management was dishonest
2) there is a chance of a default
the second reason can be rebuked with the arguement that the credit squeeze has exsisted even before the agreement with westpac as its share price has recovered from a drop of 70cent to close to $1 at one point
is it me, or
does this sudden drop in price is due to westpac reaching an agreement to buy the rams brand and franchise?
look rhg share price dropped by 50% in 3 days. This sudden drop is due primarily to people selling to fear beause of the fact that
1) management was dishonest
2) there is a chance of a default
the second reason can be rebuked with the arguement that the credit squeeze has exsisted even before the agreement with westpac as its share price has recovered from a drop of 70cent to close to $1 at one point
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Re: RHG - Rams Home Loans
Well it means that the Fed has less reason to cut rates and since RAMS gets its money from the US its not good!
hm.. would someone care to explain the effects of a-stronger-than expected employment report in the US on RHG?
i welcome all possible scenarios!....
Well it means that the Fed has less reason to cut rates and since RAMS gets its money from the US its not good!
Re: RHG - Rams Home Loans
Good article. But I don't understand why would anyone worry about owing money to someone or something going belly up (um I am not saying RAMs is going belly up tho)? Its not like they owe you money which you will struggle to get back (ie. Wesptpoint, Fincorp and the like). Quite contrary. So all things equal and with regular loan agreement in place (ie. not having any special fee/interest surcharges for defaulting case) I don't see that fact alone as a legitimate reason to refinance.
And as to borrowers leaving RAMs for conventional financial institutions: I would say that lot of borrowers (anyone knows exact %?) went to RAMS (and agreed to pay premium on prevailing interest rates) because they could not get the mortgage from the big banks in the first place. And does anybody thinks that the banks are now less stringent when approving new / refinanced loans than they were few month or years back? Ie. are the big banks all of sudden willing to offer an average RAMS (presumably low docs) borrower with any mortgage product at all?
and higher cost will force people to move their loan to the banks and banks will welcome them with open arms, pay back time for banks I guess for taking away their customers in the last 10 years.
http://www.news.com.au/business/story/0,23636,22534804-462,00.html
Very little room for RAMS to move .. pass on rate hike may force people to default or move to another lender
dont pass on the extra cost, they are losing profit...
Good article. But I don't understand why would anyone worry about owing money to someone or something going belly up (um I am not saying RAMs is going belly up tho)? Its not like they owe you money which you will struggle to get back (ie. Wesptpoint, Fincorp and the like). Quite contrary. So all things equal and with regular loan agreement in place (ie. not having any special fee/interest surcharges for defaulting case) I don't see that fact alone as a legitimate reason to refinance.
And as to borrowers leaving RAMs for conventional financial institutions: I would say that lot of borrowers (anyone knows exact %?) went to RAMS (and agreed to pay premium on prevailing interest rates) because they could not get the mortgage from the big banks in the first place. And does anybody thinks that the banks are now less stringent when approving new / refinanced loans than they were few month or years back? Ie. are the big banks all of sudden willing to offer an average RAMS (presumably low docs) borrower with any mortgage product at all?
Re: RHG - Rams Home Loans
As a general background, isn't commerical paper considered as a very low risk form of investment. that is to say, we know that putting our money in a money-fund will generate a higher return than desposits with the bank, but the risk is just marginally greater than putting it in the bank. i looked 'commerical paper' up wikipedia and it too said its a regarded as a very safe investment. seriously, commerical paper has been on for a long-time, maybe 30 years and all major banks are using it too.
not sure if im being right here but here goes,
the problem with RAMS is that, they need to pay a short-term debt and
this is done by selling commerical paper in the US
So if confidence return to the market, RAMS should be able to fund its debt. RAMS needs all the big money players like fidelity, vanguard to stop holding cash, and putting it in commerical paper which they have been doing in the first place. i think recession really spooked the cr** of the money players. so in conclusion, the market has to be certain that, there will not be a US recession.
As a general background, isn't commerical paper considered as a very low risk form of investment. that is to say, we know that putting our money in a money-fund will generate a higher return than desposits with the bank, but the risk is just marginally greater than putting it in the bank. i looked 'commerical paper' up wikipedia and it too said its a regarded as a very safe investment. seriously, commerical paper has been on for a long-time, maybe 30 years and all major banks are using it too.
not sure if im being right here but here goes,
the problem with RAMS is that, they need to pay a short-term debt and
this is done by selling commerical paper in the US
So if confidence return to the market, RAMS should be able to fund its debt. RAMS needs all the big money players like fidelity, vanguard to stop holding cash, and putting it in commerical paper which they have been doing in the first place. i think recession really spooked the cr** of the money players. so in conclusion, the market has to be certain that, there will not be a US recession.
Re: RHG - Rams Home Loans
Wow... down today another 9% to 38c..
RHG will imprint in my head, how holding a loosing trade hoping for a bounce, instead of cutting my losses early could lead to this.
Where will this stop.... not much further to hit rock bottom....surely it won't fall below 30c...????
SevenFX
Wow... down today another 9% to 38c..
RHG will imprint in my head, how holding a loosing trade hoping for a bounce, instead of cutting my losses early could lead to this.
Where will this stop.... not much further to hit rock bottom....surely it won't fall below 30c...????
SevenFX
Re: RHG - Rams Home Loans
It can only fall another 38c so it wont create any new record. Are the directors selling? or buying maybe. That's the thing to watch for now.
It can only fall another 38c so it wont create any new record. Are the directors selling? or buying maybe. That's the thing to watch for now.
Re: RHG - Rams Home Loans
Look like you wont enjoy your BBQ lambs this summer .. and when CDR comes out of trading halt I will be losing my appetite for phone calls
you win some you lose some, dont worry be happy .. I'm cool if CDR folds and I lose my 15K or so .. it's only money I will make it back sometimes this year
Look like you wont enjoy your BBQ lambs this summer
.. and when CDR comes out of trading halt I will be losing my appetite for phone calls you win some you lose some, dont worry be happy .. I'm cool if CDR folds and I lose my 15K or so
.. it's only money I will make it back sometimes this yearRe: RAMS HOME LOANS RHG
Welcome Gussman.
You may like to post in the existing RHS thread, as you will get more responses there....
https://www.aussiestockforums.com/forums/showthread.php?p=210358&highlight=rhg#post210358
Also this search link below will find you just about anything stored in ASF
https://www.aussiestockforums.com/forums/search.php
Cheers
SevenFX
Welcome Gussman.
You may like to post in the existing RHS thread, as you will get more responses there....
https://www.aussiestockforums.com/forums/showthread.php?p=210358&highlight=rhg#post210358
Also this search link below will find you just about anything stored in ASF
https://www.aussiestockforums.com/forums/search.php
Cheers
SevenFX
Nyden
G.E. Money Genie
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Re: RAMS HOME LOANS RHG
Hi, & welcome!
First off, this thread is probably more suited for this - Click here
Second of all; I don't know much about that stock, so I can't tell you if the stock is under/overvalued.
What I can tell you though - is that it wasn't a wise move. There is no such thing as a stupid move - only an uneducated move, or a simply a mistake to learn from.
The reason I say this move was unwise, was that you mentioned your reasons for buying were purely being that you heard they were undervalued - buying purely on hearsay is never a wise choice. I suggest you do a little research, read about the forum, - & decide where to go from there.
Hi, & welcome!
First off, this thread is probably more suited for this - Click here
Second of all; I don't know much about that stock, so I can't tell you if the stock is under/overvalued.
What I can tell you though - is that it wasn't a wise move. There is no such thing as a stupid move - only an uneducated move, or a simply a mistake to learn from.
The reason I say this move was unwise, was that you mentioned your reasons for buying were purely being that you heard they were undervalued - buying purely on hearsay is never a wise choice. I suggest you do a little research, read about the forum, - & decide where to go from there.
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Re: RHG - Rams Home Loans
I dont think even the creditors know what this one is worth.
It has been speculated that it could be worth more or even less than current sp. I have seen valuations from 0-100 cents per share.
I personally would not touch this kind of messy business with a barge pole.
I dont think even the creditors know what this one is worth.
It has been speculated that it could be worth more or even less than current sp. I have seen valuations from 0-100 cents per share.
I personally would not touch this kind of messy business with a barge pole.
Re: RAMS HOME LOANS RHG
Consider this remark:
"Dr Morgan said RAMS founder John Kinghorn had noted the lender would have closed unless Westpac stepped in."
from this article
http://www.theage.com.au/news/Business/Westpac-confident-on-RAMS-deal/2007/10/10/1191695974328.html
Consider this remark:
"Dr Morgan said RAMS founder John Kinghorn had noted the lender would have closed unless Westpac stepped in."
from this article
http://www.theage.com.au/news/Business/Westpac-confident-on-RAMS-deal/2007/10/10/1191695974328.html
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Re: RHG - Rams Home Loans
Hi guys....I only owned RAMS for about 3 minutes a number of weeks ago and that was a happy experience....but I think we can all learn a few years of experiences from this one....I'm a little shocked by the article in The Age to be honest and its a good pickup from ROE............if we ever wanted an example of not trusting management and being a knee jerk contrarian, this was one.........have a read through the public announcements to date, if you believed them you would think RAMS took a little hit but profits would remain just about stable..........instead management just lied through their teeth while running round begging for someone to help them out, a lot of punters got hammered and I bet there will not even be an ASIC investigation.....things like this just get swept under the rug and these white collars get to hook up to the WBC pay roll without a hitch....I've been burned a little on CDR which will be a good lesson but thankfully I will never allocate many funds to situation of this nature....
Hi guys....I only owned RAMS for about 3 minutes a number of weeks ago and that was a happy experience....but I think we can all learn a few years of experiences from this one....I'm a little shocked by the article in The Age to be honest and its a good pickup from ROE............if we ever wanted an example of not trusting management and being a knee jerk contrarian, this was one.........have a read through the public announcements to date, if you believed them you would think RAMS took a little hit but profits would remain just about stable..........instead management just lied through their teeth while running round begging for someone to help them out, a lot of punters got hammered and I bet there will not even be an ASIC investigation.....things like this just get swept under the rug and these white collars get to hook up to the WBC pay roll without a hitch....I've been burned a little on CDR which will be a good lesson but thankfully I will never allocate many funds to situation of this nature....
Re: RHG - Rams Home Loans
urm, it's surprising that i see a silver lining,
considered this
US-short-term commercial paper is considered the safest of all debt investment.
and this article
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aYYndEwKvsNs
urm, it's surprising that i see a silver lining,
considered this
US-short-term commercial paper is considered the safest of all debt investment.
and this article
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aYYndEwKvsNs
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Re: RHG - Rams Home Loans
hi,sounds good news. maybe Rams can easily get money at lower rates.
http://www.bloomberg.com/apps/news?pid=20601009&sid=aYMKfdM5DtFk&refer=bond
hi,sounds good news. maybe Rams can easily get money at lower rates.
http://www.bloomberg.com/apps/news?pid=20601009&sid=aYMKfdM5DtFk&refer=bond
