The default rate on subprime mortgage loans hit 12.4% in May, up 41 basis points from the rate recorded in April, and the foreclosure rate climbed to 5%, according to a Friedman Billings Ramsey report.FBR managing director Michael Youngblood said he expects the subprime default rate to continue to drift upward to 14.45% by April 2008. The default rate on subprime loans stood at 5.7% in May 2006 and the foreclosure rate was 2.73%. The report by the Alexandria, Va.-based investment banking firm also shows that the default rate on alternative-A loans rose to 2.69% in May, up 21 bps from that of the previous month. (The default rate includes loans 90 days or more past due, in foreclosure, and real estate owned.) FBR can be found online at http://www.fbr.com.
-
According to the Federal Reserve Board's latest financial stability report, persistent inflation and policy uncertainty are the primary worries for banks. Survey respondents expressed heightened anxiety over murky policy outlooks due to geopolitical turmoil and rapidly approaching domestic elections.
11h ago -
Leaders of ORNL Federal Credit Union are piloting Zest AI's new artificial intelligence-powered assistant to ensure equitable underwriting practices and measure performance against similar institutions.
April 19 -
McCargo stabilized the agency at a crucial time as she helped navigate it through both a pandemic and subsequent dramatic interest-rate cycle change.
April 19 -
The quasi-public entity's plan to buy certain closed-end seconds would constitute "unnecessary government encroachment," the Structured Finance Association said.
April 19 -
The mortgage subsidiary of Hilltop Holdings posted another quarterly loss and volume slipped, but management also sees signs of optimism.
April 19 -
The increasing frequency and severity of droughts was top of mind for panelists at AmeriCatalyst's "Going to Extremes" conference Thursday.
April 18