Fitch Ratings says statements by MGIC Investment Corp., Milwaukee, regarding C-BASS and MGIC's merger with Philadelphia-based Radian Group have made the probability that the merger will be consummated "lower than previously expected."Back on July 31, when both companies admitted they would have to take an impairment on Credit-Based Asset Servicing and Securitization LLC, a New York-based specialty servicer, Fitch put Radian on Rating Watch Negative. It said the move reflected Radian's "relatively weakened stand-alone financial position as a result of C-BASS." Fitch added that if the merger didn't occur, Radian's ratings would be downgraded by one notch. MGIC's announcements have increased the likelihood that this will happen. On the other hand, Fitch said MGIC is still in "a good position to operate at its current rating level, either combined with Radian or as a stand-alone company." Fitch can be found online at http://www.fitchratings.com.
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The Bureau of Economic Analysis' personal consumption expenditures inflation report for May showed that inflation had risen 4.1%, meeting elevated expectations and casting further doubt on the prospects of near-term interest rate cuts from the Federal Reserve.
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Critics of the OCC's broad preemption stance say the OCC is resurrecting an approach Congress curtailed after the financial crisis, setting up another Supreme Court test over the balance between federal banking powers and state consumer protections.
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There's broad support for the effort to reduce costs and processes, but the Appraisal Institute warns about reducing property valuation quality control checks.
June 24 -
Foundation had introduced Version 3 of its credit risk model, using the most recent delinquency data, to improve loan performance predictions.
June 24 -
Fannie Mae's conservator is supporting the government-sponsored enterprise's test within certain boundaries, according to a recent social media post.
June 24 -
The Senate Banking Committee is slated to consider Christopher Phelen to be the chair of the Council of Economic Advisers on Thursday. Phelen has said in past academic papers that fractional reserve banking is "highly problematic."
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