One-third of banks expect the credit quality of their subprime and nontraditional mortgage holdings to deteriorate over the next 12 months, according to a July survey of senior loan officers by the Federal Reserve Board.But so far, the performance of those loans has been fairly steady. Over 85% of senior loan officers reported that the performance of their subprime loans and nontraditional loans is "unchanged" over the past 12 months. "Eight banks reported that the quality of their portfolios of nontraditional products performed better than had been expected, and only one institution indicated that the quality of its portfolio had performed somewhat worse than had been anticipated," the Fed said. The July survey of senior loan officers found that banks generally hold more nontraditional loans -- alt-A, interest-only and option-adjustable mortgages -- on their books than subprime credit quality loans. Only 30 banks said they hold subprime loans, compared to 48 banks taking part in the survey that hold non-traditional loans.
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McCargo stabilized the agency at a crucial time as she helped navigate it through both a pandemic and subsequent dramatic interest-rate cycle change.
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The quasi-public entity's plan to buy certain closed-end seconds would constitute "unnecessary government encroachment," the Structured Finance Association said.
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The mortgage subsidiary of Hilltop Holdings posted another quarterly loss and volume slipped, but management also sees signs of optimism.
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The increasing frequency and severity of droughts was top of mind for panelists at AmeriCatalyst's "Going to Extremes" conference Thursday.
April 18 -
In a Senate hearing, Director Sandra Thompson said a raise to the required income threshold provided to affordable housing was on the table, while housing regulators also faced questions related to property insurance hikes and title insurance waivers.
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The nonpayment rate for non-qualified mortgages is up 21 basis points from February and 134 basis points from March 2023, Morningstar DBRS said.
April 18