Downey Posts Big Loss; Average LTV at 65%

Downey Financial Corp., Newport Beach, Calif., lost $248 million in the first quarter, citing "ongoing" weakness in the housing market. The thrift, which ranks 44th among all residential funders, set aside $236 million to cover credit losses and noted that during the quarter its average loan-to-value ratio had improved to 65% (from 67% in the first quarter of 2007). Its average FICO score was 745 in the first quarter, compared with 721 a year earlier. The company reported that it is seeing a pickup "in the rate at which our foreclosed homes are being sold." Downey said 23% of its inventory of unsold homes "was either in escrow to be sold or in negotiation to be sold" at the end of March. The company can be found online at http://www.downeysavings.com.