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Tag Archives: Fitch Ratings

Fitch: BofA’s MSR Sales Indicate New Trend Among Big Banks

Following Bank of America's announcement of a $306 billion sale of mortgage servicing rights (MSRs) Monday and amid talk of more MSR sales from the bank Thursday, Fitch suggests BofA may not be alone in its strategy of unloading MSRs. ""We believe that other banks with large MSR assets may also begin to complete sales or pursue other strategies to limit their size on bank balance sheets,"" Fitch said this week. Fitch specifically points to Wells Fargo and JP Morgan as banks likely to fall in line with BofA's approach.

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Fitch: Final QM Rule to Shape Future Market

While the mortgage market continues its slow trod toward recovery--with distressed liquidations and delinquencies on the decline--industry participants await the final word from lawmakers on one key issue affecting the future of their businesses. The Consumer Financial Protection Bureau has expressed its intent to announce its final decision on what constitutes a qualified mortgage this year. This, in turn, will give the industry some insight into what can be expected to define a qualified residential mortgage (QRM), according to Fitch Ratings.

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CMBS Delinquency Rate Down to Two-Year Low: Fitch

A surge in new issuances brought down the CMBS delinquency rate in November to a two-year low, according to a report from Fitch Ratings. The November CMBS delinquency rate stood at 8.17 percent, representing a decrease of 12 basis points (bps) from 8.29 percent in October. The decrease marks the sixth consecutive month the rate has fallen and is the lowest level since November 2010, when the rate was 7.96 percent.

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Housing Recovery Benefits Title Insurance Industry: Fitch

With revenue up and the housing market showing a sustained recovery, Fitch Ratings says the outlook for the U.S. title insurance industry is ""stable."" According to the ratings agency, its stable rating outlook is based on its belief that ""ratings actions for the industry will on balance approximate current levels over the next 12-18 months as financial performance has improved recently."" Operating profit margins for Fitch's title universe rose to 10.3 percent in the first nine months of 2012, a dramatic jump from 6.1 percent during the same period in 2011.

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Fitch: Impact of Sandy on RMBS

If Hurricane Sandy has any impact on the performance of residential mortgage-backed securities (RMBS), it will probably be one that is short-term, according to Fitch Ratings. The global rating agency says a ""modest and temporary increase in mortgage delinquency could occur"" after assessing the potential impact of the storm that has devastated areas in the Mid-Atlantic and Northeast coast.

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Cumulative CMBS Defaults Up But Slowed by New Issuances

The cumulative default rate for commercial mortgage-backed securities (CMBS) in the U.S. rose over the third quarter, largely due to an increase in defaults among office loans, according to the latest data from Fitch Ratings. The rate rose from 13.2 percent in the second quarter of this year to 13.5 percent in the third quarter, according to Fitch. The total amount in CMBS loans that defaulted in the third quarter was $2.2 billion. The total number of newly defaulted loans during the quarter is 119.

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Fitch Forecasts Continued Improvements for Housing

Fitch Ratings is predicting a continued recovery into 2012, according to a recent report titled U.S. Homebuilding and Construction: The Chalk Line. A slowly growing economy combined with ""somewhat diminished distressed home sales competition, less competitive rental cost alternatives, and new home inventories at historically low levels"" led the ratings agency to predict growth for housing starts and home sales into 2012, with further moderate improvements into 2013.

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CMBS Delinquency Rate Falls for Fourth Straight Month: Fitch

Although the improvement was slight, the drop in the delinquency rate for commercial mortgage-backed securities (CMBS) in September was still an improvement, and the decline marks the fourth straight monthly drop, Fitch Ratings reported Friday. The CMBS delinquency rate fell to 8.37 percent from August's 8.39 percent.

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More CMBS Loans Exit Special Servicing: Fitch Ratings

The population of CMBS loans handled by special servicers is declining, which could signal a turning point for the commercial real estate sector, Fitch Ratings said in a report Friday. As of June 30 of this year, the balance for CMBS loans shrunk to $80.5 billion, down from $85.5 billion in June 2011 and a significant drop from $92 billion in June 2010.

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