The ratings of Doral Financial Corp., a San Juan, Puerto Rico-based mortgage lender, and of Doral Bank have been downgraded by Fitch Ratings.Doral's long-term issuer and senior unsecured debt ratings were downgraded from C/D to D. Doral Bank's long-term nondeposit obligations were downgraded from BBB-minus to BB, and its short-term nondeposit obligations were downgraded from F3 to B. The ratings remain on Rating Watch Negative. The actions followed an announcement that the Securities and Exchange Commission has ordered an investigation into Doral and a further delay in its restated financials that relates chiefly to information on the company's mortgage loan sales to local financial institutions, Fitch said. "With Doral being a major seller of mortgages in the local market, the amount of mortgages that could be required to be brought back on balance sheet would pressure capital ratios and require funding programs to be broadened in the face of increased uncertainty regarding Doral's future financial performance," the rating agency said. "The rating action takes into consideration the possibility of deterioration in capital ratios, but expects the company to remain well capitalized relative to quantitative regulatory standards." Fitch can be found online at http://www.fitchratings.com.
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A federal judge in Texas dismissed the Consumer Financial Protection Bureau's medical debt rule and prohibited states from passing their own laws prohibiting medical debt on credit reports.
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Dr. Mark Calabria takes on the additional role of chief statistician of the United States; retired Ally Bank executive Diane Morais has joined First Citizens Bancshares' board of directors; MainStreet Bank has promoted Alex Vari to chief financial officer; and more in this week's banking news roundup.
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While refinances are behind the latest increases, the pace of purchase activity may be a stronger indicator of where the housing market sits.
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The share of economists expecting a September rate reduction grew in the July Wolters Kluwer survey, but the October or later percentage also increased.
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Rising home prices and softening sales offer a mixed view of a market that some say is shifting to favor buyers.
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The notes are backed by home improvement installment loans originated by approved dealers in Foundation Finance Company's network.
July 11