Citing heightened concerns about the inclusion of construction loans in commercial real estate collateral debt obligations, Derivative Fitch has announced a refinement of its methodology to quantify market risks for such loans.The heightened concerns stem from the current liquidity problems in the U.S. mortgage market, the rating agency said. "The chief areas of focus remain pre-leasing, barriers to entry, absorption, tenant quality, sponsor expertise, the strength and the overall quality of the market, and the remaining time to complete the project," said David Harrison, a Fitch senior director. "However, the new analytical approach provides a means to better differentiate and quantify the relevant risks." Derivative Fitch said it pays "particularly close attention" to cost overruns in assessing a construction loan's default probability. The rating agency, a subsidiary of Fitch Inc., can be found online at http://www.derivativefitch.com.
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The lender recorded a $59 million net loss in the fourth quarter, an 83% improvement from its third quarter performance.
March 28 -
Initial analyses of Home Mortgage Disclosure Act data show UWM ahead in 2023 loan numbers and dollar volume, but Rocket's market share still looks competitive.
March 28 -
Last year, the Raleigh, N.C.-based Integrated called off a deal to sell itself to MVB Financial after bank stocks took a hit in the aftermath of the regional bank failures. Capital hopes to expand its government-guaranteed lending with the transaction.
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The pending end of the program comes as over half of U.S. states have already ceased accepting new applicants for federal aid aimed to help struggling households with mortgage payments.
March 28 -
But the 30-year fixed rate mortgage is still near 7%, and that remains the overhang on the housing market, Freddie Mac said.
March 28 -
Mortgage payments rose 10% year-over-year to an all-time high for March, Redfin said.
March 28