Tuesday, January 15, 2008

FED: Just Another Quadrupling of Reserves

by Tanta on 1/15/2008 09:33:00 AM

SANTA MONICA, Calif., Jan 15, 2008 (BUSINESS WIRE) -- FirstFed Financial Corp., parent company of First Federal Bank of California, today announced that, due to rising single family loan delinquencies, the provision for loan losses for the current quarter is expected to be between $20 million and $23 million, compared with $4.5 million that was recorded for the third quarter of 2007.

Non-accrual single family loans at December 31, 2007 rose to approximately $180 million, from $83 million at September 30, 2007, while single family loans thirty to eighty-nine days delinquent rose to approximately $237 million, from $72 million at September 30, 2007. Adjustable rate mortgages that have reached their maximum allowable negative amortization, which now require an increased payment, are a contributing factor in the higher level of delinquent loans.
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