Fitch Ratings has increased the credit enhancement levels required to obtain ratings on commercial mortgage-backed securities as a result of the declining quality of CMBS loans in recent months, according to the rating agency.Fitch said it expects to see subordination levels in CMBS deals increase further this year if current trends continue. "Over the past year, there has been a decline in structural features such as amortization, reserves, and cash management practices, more aggressive underwriting, and a diminishing quality of borrowers with lower levels of equity in their properties," said Dan Chamber, a Fitch managing director. The rating agency's views are outlined in a report titled "U.S. CMBS: Where Have All the Good Loans Gone?" Fitch can be found on the Web at http://www.fitchratings.com.
-
According to the Federal Reserve Board's latest financial stability report, persistent inflation and policy uncertainty are the primary worries for banks. Survey respondents expressed heightened anxiety over murky policy outlooks due to geopolitical turmoil and rapidly approaching domestic elections.
5h ago -
Leaders of ORNL Federal Credit Union are piloting Zest AI's new artificial intelligence-powered assistant to ensure equitable underwriting practices and measure performance against similar institutions.
6h ago -
McCargo stabilized the agency at a crucial time as she helped navigate it through both a pandemic and subsequent dramatic interest-rate cycle change.
7h ago -
The quasi-public entity's plan to buy certain closed-end seconds would constitute "unnecessary government encroachment," the Structured Finance Association said.
9h ago -
The mortgage subsidiary of Hilltop Holdings posted another quarterly loss and volume slipped, but management also sees signs of optimism.
9h ago -
The increasing frequency and severity of droughts was top of mind for panelists at AmeriCatalyst's "Going to Extremes" conference Thursday.
April 18