Closures of stores that issued credit cards haven’t prompted a significant uptick in charge-offs in recent years, according to Fitch Ratings. Analysts suggest that consumer-related trends remain the main driver of credit card ABS performance, and performance looks poised to decline. A number of retail card issuers have declared bankruptcy, closed large numbers of stores or liquidated in recent years. Fitch analyzed the relevance of the aggregate number of locations closed per ...
Fannie Mae and Freddie Mac reported $6.96 billion in net income during the second quarter, down 3.2 percent from the previous quarter, and the duo have actively been working to trim their retained portfolios. Freddie has reduced its portfolio to $236.4 billion in the second quarter, well below the 2018 yearend purchase agreement cap of $250.0 billion. Its portfolio declined 1.9 percent in the second quarter but was down 16.7 percent from June 2017. Some 41.8 percent of ...
A report from a Standard & Poor’s structured finance team says several collateralized loan obligation transactions rated between 1994 and 2009 are about to close with minimal defaults while a re-port from Moody’s Investors Service warns that apparently harmless provisions of CLOs can actually increase risks to investors. It has been nearly a decade since the last CLO 1.0 deal was issued, and the last of these transactions are nearing the end of their lives, according to ...
Refinances of outstanding single-family rental securitizations are accounting for a growing share of new issuance. The trend has been prompted, in part, by home price appreciation, which has made it more difficult for some firms to source new properties. Some $4.41 billion of single-family rental securities were issued in the first half of 2018, according to Inside MBS & ABS. Blackstone Group’s Invitation Homes dominates the sector. The firm, which merged with Starwood Waypoint Homes ...
Originators stranded with VA “orphan loans” that cannot be securitized in a Ginnie Mae MBS are finding temporary workarounds to deal with the problem, while maintaining hope for a potential solution from the government. However, few firms are holding their breath that Ginnie will come to the rescue, especially since the agency has maintained that only new legislation can solve the problem. The problem was caused by a quirk in a law aimed at preventing the churning of VA ...
July is usually a good month for agency MBS issuance when the housing market is strong. In 2018, the fundamentals just weren’t there. Fannie Mae, Freddie Mac and Ginnie Mae guaranteed $101.39 billion of new single-family MBS last month, a disappointing 0.6 percent lower than in June. Purchase mortgages accounted for a substantial 74.4 percent of July issuance, although volume was up just 3.2 percent from June. The housing market ... [Includes two data charts]
Sales of agency mortgage servicing rights were up in the second quarter, mostly as a result of heavier coissuance volume, according to an exclusive new Inside Mortgage Trends analysis and ranking. Servicing rights on $129.57 billion of agency mortgages changed hands during the second quarter, up 6.4 percent from the first three months of the year. The data are culled on Fannie Mae, Freddie Mac and Ginnie Mae mortgage-backed securities ... [Includes three data charts]
Despite a solid increase in mortgage originations and stable conditions for hedging, commercial banks and savings institutions reported generally lackluster earnings on their mortgage banking operations in the second quarter. A new Inside Mortgage Trends analysis of earnings reports from 24 banking organizations tallied $1.98 billion in mortgage banking income for the second quarter. That was down 12.3 percent from the first three months of ... [Includes one data chart]
With originations tepid of late, mortgage banking firms have been holding their payrolls steady, careful not to add overhead in what might prove to be a challenging market for the remainder of 2018. According to figures compiled by the U.S. Bureau of Labor Statistics, mortgage banking firms employed 251,600 workers at the end of June, flat compared to the prior month. Companies that fall into the loan brokerage category employed 91,400 full timers at June 30, down 400 positions from May ...
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