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This is probably it, since I still cannot find anything else, and perhaps he is correct for the short term.

A couple of points:

1) I think the key for them is to keep bringing assets in. With their savings account yield advantage over traditional banks I would think the money will keep coming in. Once in, they will find places to invest it even if refinancing is dead and the housing market slows down a little.

2) My understanding is that about 58% of their loans are from California. In a quick internet search it appears that California housing market seems to be doing just fine and the larger the loan, the more BOFI makes, correct?

3) If I have a plan to hold 5+ years this could be a buying opportunity, if this truly is the reason for the sell off. They now have a PE of around 20. I would think they are going to grow assets/revenue/income by over 20%/year with their advantage over traditional banks. This gives them a PEG of under 1.

Thoughts.
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