Downey Savings to report $23 million quarterly loss

Local lender (to us anyway) Downey Savings reported a loss of $23 million for the 3rd quarter recently ended.  The loss is due to none-other than loan loss-related charges and the overall slow down in the housing market.   From the American Banker story: The company will take a $82 million provision for credit losses, while the value of its real estate held for development will fall by $9 million. "The continued weakening and uncertainty relative to the housing market, coupled with the third-quarter disruption in the secondary mortgage markets, unfavorably impacted our borrowers and the value of their loan collateral," the firm added. This is an important development in many respects.  Downey Savings is one of many regional portfolio lenders who specialize in the negati