Rating agencies Standard & Poor's and Moody's Investors Service expect the 2006 book of subprime mortgages to perform well below the norm, but spokesmen for the firms say they don't believe problems on the lowest rung of the credit ladder will reach up to take a bite out of the prime and alternative-A sectors."The turmoil so far has been limited to the subprime space," S&P's Scott Mason said at the Mortgage Bankers Association's National Nonprime and Networking Conference in Carlsbad, Calif. "There will probably be some tightening in alt-A as well, but that's about it." David Teicher of Moody's agreed. Although early payment defaults have increased dramatically in the two sectors, he said, they are rising from general delinquency levels that are low by historical standards. Mr. Mason told the conference "there's a good probability" that vintage 2006 nonprime loans "will be one of the worst-performing in recent history." Mr. Teicher said that while it's still "too early to tell" how last year's subprime book will perform, it is more likely to play worse than better.
-
The massive mortgage business saw a first quarter profit mitigated by nearly $300 million in hedging losses.
7h ago -
The Consumer Financial Protection Bureau has seen excessive property-inspection charges, fees that loan mods should eliminate and improper line-item labels.
April 24 -
Michael Tannenbaum, whose experience in the financial services industry spans over 15 years, has a track record of helping companies scale and grow.
April 24 -
A majority of consumers earning more than $100,000 annually said they were concerned about their own ability to purchase a home, demonstrating how affordability issues are impacting those at many socioeconomic levels, the University of Michigan study found.
April 24 -
The nonbank's results add to other indications that the first quarter's "higher for longer" rate scenario had an upside for efficient servicing operations.
April 24 -
The latest rate increases contributed to a 1% drop in purchases from the previous week and 15% annually, according to the Mortgage Bankers Association.
April 24