The credit performance of Downey Financial's payment option ARM portfolio is continuing to deteriorate, according to a new research report released by Credit Suisse. The thrift had $2.03 billion in non-performing assets in August, representing 14.68% of its total holdings. CS analyst Moshe Orenbuch said he is maintaining his "neutral" rating on the California-based lender "given the risks associated with recapitalization in the current environment." Downey is operating under a regulatory consent order from the Office of Thrift Supervision. Among residential servicers, it ranks 44th with $10.8 billion in receivables.
Processing Content
