Fitch Ratings has downgraded BankUnited Financial Corp.'s long-term issuer default, senior debt, and individual ratings, and revised the company's rating outlook to negative. The rating agency said the Coral Gables, Fla.-based financial institution has seen rapid credit deterioration because of a sharp rise in nonperforming assets to levels beyond what Fitch had expected. BankUnited had a fiscal first-quarter loss of $25.5 million. "Asset quality has been hampered by the rise in delinquencies within its option ARM portfolio, particularly loans with 2006 vintages," Fitch said. "The worsening asset quality metrics prompted the company to boost provisions by $65 million to $117.7 million for the period, compared to $58.6 million the previous quarter." As for the negative outlook, Fitch said the weak housing market could put further pressure on BankUnited's earnings and asset quality. BankUnited is downsizing its wholesale mortgage production platform.
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The lender recorded a $59 million net loss in the fourth quarter, an 83% improvement from its third quarter performance.
March 28 -
Initial analyses of Home Mortgage Disclosure Act data show UWM ahead in 2023 loan numbers and dollar volume, but Rocket's market share still looks competitive.
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Last year, the Raleigh, N.C.-based Integrated called off a deal to sell itself to MVB Financial after bank stocks took a hit in the aftermath of the regional bank failures. Capital hopes to expand its government-guaranteed lending with the transaction.
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The pending end of the program comes as over half of U.S. states have already ceased accepting new applicants for federal aid aimed to help struggling households with mortgage payments.
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But the 30-year fixed rate mortgage is still near 7%, and that remains the overhang on the housing market, Freddie Mac said.
March 28 -
Mortgage payments rose 10% year-over-year to an all-time high for March, Redfin said.
March 28