The values of U.S. commercial real estate properties in coastal areas may suffer -- and affect commercial mortgage-backed securities -- as insurance companies reduce loss exposure to hurricane-prone areas, according to Fitch Ratings.Joseph Kelly, a Fitch senior director, said CMBS servicers have noticed a "sharp increase" ranging from 25% to 400% in windstorm and flood insurance premiums since the beginning of hurricane season. "This may present a problem for commercial real estate properties where premium increases cannot be passed through to tenants," he said, "and in fact the resulting value decline may be severe enough so a property can no longer support its full debt service, increasing the likelihood of payment default." Besides premium hikes, insurance companies may raise deductibles, reduce coverage amounts, or drop coverage altogether, Fitch noted. "Fitch's chief concern is that windstorm insurance along coastal areas may become commercially unavailable, possibly echoing in severity the terrorism insurance issues of late 2001/early 2002," said Patty Bach, a Fitch senior director. Fitch can be found online at http://www.fitchratings.com.
-
The massive mortgage business saw a first quarter profit mitigated by nearly $300 million in hedging losses.
3h ago -
The Consumer Financial Protection Bureau has seen excessive property-inspection charges, fees that loan mods should eliminate and improper line-item labels.
7h ago -
Michael Tannenbaum, whose experience in the financial services industry spans over 15 years, has a track record of helping companies scale and grow.
10h ago -
A majority of consumers earning more than $100,000 annually said they were concerned about their own ability to purchase a home, demonstrating how affordability issues are impacting those at many socioeconomic levels, the University of Michigan study found.
April 24 -
The nonbank's results add to other indications that the first quarter's "higher for longer" rate scenario had an upside for efficient servicing operations.
April 24 -
The latest rate increases contributed to a 1% drop in purchases from the previous week and 15% annually, according to the Mortgage Bankers Association.
April 24