The BBB-minus senior unsecured debt rating of CapitalSource Inc., Chevy Chase, Md., has been placed on Rating Watch Negative by Fitch Ratings in the wake of its announcement that it intends to convert into a real estate investment trust.The rating agency said CapitalSource's planned REIT conversion is driven by management's desire to lower the company's cost of capital and improve the efficiency of its equity. "While converting to a REIT is generally viewed as a credit negative for bondholders, in CapitalSource's case there are come offsets, specifically the revised loan-loss reserve policy, which makes this more of a credit neutral," Fitch said. "The Rating Watch action is driven by Fitch's concern regarding the execution of CapitalSource's REIT conversion, including the impact of paying a quarterly dividend and what, if any, changes will result in the company's business to support the dividend in connection with a higher level of common equity outstanding." Fitch can be found online at http://www.fitchratings.com.
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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.
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