In the wake of hurricanes Katrina and Rita, massive property damage and high unemployment rates pushed default rates on subprime mortgages up to 32.6% in Louisiana and 29.9% in Mississippi as of Dec. 30, according to Friedman Billings Ramsey.But the bad news is not over, according to the investment banking firm. FBR said it expects conditions to get worse as this year progresses, with subprime defaults (90 days or more past due) in New Orleans rising from 47.8% to 61.3% by the end of the year, and defaults in Biloxi, Miss., rising from 35.4% to 66.4% by year-end. Nationwide, the default rate on subprime mortgages was 7.07% at the end of 2005. The FBR research report on the performance of residential asset-backed securities also shows that defaults on nonagency prime loans had climbed to 13.20% in Louisiana and to 6.02% in Mississippi as of Dec. 30. Hibernia National Bank, a Fannie Mae/Freddie Mac prime lender based in Baton Rouge, La., reported that its default rate was 6.72% as of Dec. 30, up from 0.33% at year-end 2004, according to the Quarterly Data Report, a MortgageWire affiliate.
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While home lenders are seeing a decrease in issues coming through mobile channels, phone fraud spiked last year, accounting for 28% of losses, a new report found.
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The massive mortgage business saw a first quarter profit mitigated by nearly $300 million in hedging losses.
April 24 -
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.
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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.
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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