Originally Posted by socrates

One thing to remember about MI is they are unlike Hilton & Starwood, they own very few of their hotels-by very few I mean it is typically under 10 each year but they do manage a large % of them for the property owners...this means they dont have to worry about making mortgage payments on the hotels - the owner of the building does, capital expenses for these hotels is the responsibility of the building owner etc because MI is just a manager of the asset....what this boils down to is MI continues to generate profits even in difficult economies (the downside is limited...but then because they dont own the properties the upside is limited too)....the real key to MI is the net cash flow they generate each year, I haven't taken the time to look at it in a few years but it has always been in excess of $800M each year...that's a lot of cash....one area MI is being hit on is MVCI's operations, they are the developer and they would package the mortgages for owners who purchased weeks and sell them on the open market, given that the financial market for owner occupied residences has frozen I can assure you the market for timeshare mortgages is equally frozen so I can see that division looking at their entire cost structure.....but now with this said I am a MVCI owner and haven't yet received such a letter but then I own my units free and clear (I'm confused why someone with their lending arm sent the lend anyways but it sounds as if this was a new purchase offer or something similar)