The New York Federal Home Loan Bank is warning member institutions to expect very low quarterly dividends going forward while the bank rebuilds its retained earnings.The FHLBank suspended its third quarter dividend after it sold nearly $2 billion in impaired manufactured housing securities at a $190 million loss. This loss reduced the bank's retained earnings from $240 million to $100 million. In a letter to shareholders, New York FHLBank president Alfred DelliBovi noted that the bank's federal regulator wants dividends paid out of earnings after a set-aside is made to build retained earnings to an appropriate level. "Given our need to rebuild retained earnings and the loss of investment income from the nearly $2 billion in MBS investments we sold in September, we expect that future dividends paid by the Home Loan Bank will be at a lower level relative to prevailing market interest rates than the dividends of the recent past," Mr. DelliBovi says in the letter. In the second quarter, the NY bank paid a 5.05% dividend. Mr. DelliBovi also noted that FHLBank officers and employees will not receive a year-end bonus this year.
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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.
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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.
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The government mortgage-bond guarantor will require additional information on foreclosure prevention actions, and retire some forbearance reporting.
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But views are split, at least in the near-term on whether rising mortgage rates are holding back the Spring home purchase season.
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The top five producers had an average dollar volume of FHA loans of more than $50 million in 2023.
April 18