Fitch Ratings says it expects the cumulative default rate on commercial mortgage-backed securities to hit 5% by year-end, based on the 13 years the rating agency has been tracking the securities.Fitch also predicts an average annual CMBS default rate of 1%. Retail-backed CMBS are of particular concern, since the rating agency says it expect a slowdown in the retail sector as higher interest rates cut down on opportunities for consumers to tap into their home equity, which has fueled much consumer spending in recent years. "Declining sales will ultimately cause increased CMBS defaults, particularly among large chain retailers focused on discretionary retail expenditures such as home furnishings and appliances," said Mary O'Rourke, a Fitch senior director. The rating agency says it also expects defaults on multifamily-backed CMBS to go up, primarily due to overbuilding in markets such as Dallas, Las Vegas, and Atlanta. Fitch sees improvement in the hotel sector, and says it expects defaults on hotel-backed loans to decline. However, the sector is seen as "still very vulnerable to geopolitical events."
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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.
July 11 -
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.
July 11 -
While refinances are behind the latest increases, the pace of purchase activity may be a stronger indicator of where the housing market sits.
July 11 -
The share of economists expecting a September rate reduction grew in the July Wolters Kluwer survey, but the October or later percentage also increased.
July 11 -
Rising home prices and softening sales offer a mixed view of a market that some say is shifting to favor buyers.
July 11 -
The notes are backed by home improvement installment loans originated by approved dealers in Foundation Finance Company's network.
July 11