Finance

Mortgage-backed securities aren't generally considered risky assets, but how SVB managed them contributed to its woes.

One year after the Federal Reserve started frantically raising interest rates, the collapse of Silicon Valley Bank answered what had become perhaps the hottest question on Wall Street: When is something going to break?

The FDIC named Greg Carmichael, who retired last year as CEO of Fifth Third Bancorp, to run a bridge bank that will hold Signature's deposits and most of its assets.

The Treasury Department issued a "systemic risk exception" allowing it to cover uninsured deposits at SVB and Signature Bank, which New York State closed on Sunday.

Despite ending 2022 in the red, the lender and servicer saw full-year profits exceed 2021's total.

The REIT failed to post profits in any quarter last year, as the mortgage industry encountered a steep originations slowdown.

The company lost $163.7 million last year as funded origination volume fell 71% annually to $27.6 billion in 2022.

Executives at the company pointed to market volatility, year-end seasonality and its exit from the wholesale channel as reasons for the deficit.

Bond traders boosted bets that the Federal Reserve may re-accelerate the pace of rate increases at the policy meeting later this month.

The new special purpose credit program is part of efforts to reduce the racial gap in homeownership and offers assistance to borrowers who meet certain income and location requirements.

Even with the government-sponsored enterprise's statement that full appraisals are no longer required to prove value, industry participants say they will remain a tool for lenders to use when needed.

Lenders have focused on front-end cost differences since key secondary market players opened up the option, but what happens when a problem emerges down the road is worth weighing too.

The government-sponsored enterprises will likely have their mainstay bonds exempted from the potential securitization-related rule, but their credit-risk transfers could be subject to it, some experts say.

The business is heavily reliant on mortgage originations and some participants are turning to other sources of income to bolster results.

CEO Mat Ishbia touted his firm's competitive pricing strategy as the reason why the company has remained stable against major setbacks and losses at competitors like Wells Fargo and Rocket Mortgage.

In Jay Farner's last earnings call as CEO, management emphasized long-term client development efforts like the forthcoming credit card program.

The company reported an $80 million loss for the three-month period on mortgage servicing rights declines but $26 million in net income for the year.

Reducing access to funding would harm both homebuyers and communities across the country.

The agency is floating new criteria for commingled securities and credit scores, which are undergoing policy shifts.

Interest rate increases and economic concerns led the government entity to lower the required amount from $1 million to $250,000.