DSNews The homepage of the servicing industry
Both the national composite default index and both mortgage default indices posted historical lows in April, according to S&P Dow Jones Indices and S&P/Experian Consumer Credit Default Indices for April 2015 released Tuesday. April's composite default index fell by eight basis points from March down to a historical low of 0.97 percent, its lowest level since July 2014. The composite index had just fallen from 1.12 to 1.05 from February to March, its first month-over-month decline in eight months.
Meanwhile, the second mortgage default rate declined by seven basis points down to a historical low of zero point 43 percent. It has declined by 23 basis points in the last two months. The first mortgage default index fell by nine basis points from March to April, its largest decrease since May 2014, down to a record low of zero point 83 percent. Four out of the five major cities measured – New York, Chicago, Dallas, and Miami – reported major decreases in their default rate from March to April, with Los Angeles being the only outlier.
A federal judge dismissed claims in lawsuits against U.S. Bancorp and Bank of America accusing the two banks of failing in their duties as trustees for residential mortgage-backed securities that were found to have defects after they were sold, causing billions of dollars in losses to investors. U.S. District Judge Katherine Forrest in Manhattan dismissed the claims against the two banks in three separate decisions, ruling in one decision that the claims had not been pleaded correctly and in the other two decisions that the plaintiffs lacked standing to sue.
