Subprime auto lending is just about back to the levels seen before the financial crisis, with increased ABS issuance volumes, somewhat higher credit losses and more credit enhancement to offset declining ABS credit quality, according to new research from Standard & Poor’s Rating Services. While newer subprime auto ABS have more credit risk, ratings are expected to remain stable. During an S&P webinar this week, Amy Martin, a senior director at the rating service, pointed out...
The conditional default rate, or annualized liquidations, of non-agency MBS loans rose 20 basis points to 4.92 percent in the second quarter, after declining for seven consecutive quarters from 9.76 percent in the second quarter of 2012, Fitch Ratings reported this week. “The recent turnaround in the trend can be partly attributed to a growing portion of bank-held real estate owned properties, which typically liquidate much faster than those that are still in the foreclosure process,” said Fitch. The rate of completed foreclosures to REO property has trended higher for four consecutive quarters. The previous decline in the CDR was driven...
“There’s lots of talk of companies being for sale right now,” said Paul Hindman, managing director of Management Advisors Executive Search, “but not too much talk of deals closing.”
One critic of the report on nonbank risk had this to say: “It’s just ridiculous what they [the IG] get away with. There’s risk in every business. Don’t they get it?”
Criticisms about servicing seem to be stubbornly resistant to much improvement, however, hovering in the 3,000 to 4,000 range for the last six quarters.
“Prospect has a target list and they have an audience,” said one advisor. “But so far, in the mortgage M&A market there has been a lot of talk – with not too many deals getting done.”
Union Mortgage has been losing some of its top executives over the past year. A few months back, its president and CEO Robert Eastep departed for Stonegate Mortgage…
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