Two classes of Fremont Home Loan Trust's residential mortgage-backed certificates, series 2002-1, have been downgraded by Fitch Ratings.Class M-3 was downgraded from BBB to BB, and class M-4 was downgraded from BBB-minus to BB-minus. Fitch also affirmed the ratings on two classes in the transaction. The downgrades were attributed to concerns about the adequacy of credit enhancement in view of loss expectations. "In May 2005, the transaction passed stepdown tests and allowed the credit enhancement to be lowered to new target amounts," the rating agency said. "The stepdown has allowed for a significant amount of principal allocation to the subordinate classes. However, in recent months, losses have increased relative to the available excess spread and have caused the overcollateralization amount to decline below the target amount."
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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.
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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.
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McCargo stabilized the agency at a crucial time as she helped navigate it through both a pandemic and subsequent dramatic interest-rate cycle change.
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The quasi-public entity's plan to buy certain closed-end seconds would constitute "unnecessary government encroachment," the Structured Finance Association said.
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The mortgage subsidiary of Hilltop Holdings posted another quarterly loss and volume slipped, but management also sees signs of optimism.
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The increasing frequency and severity of droughts was top of mind for panelists at AmeriCatalyst's "Going to Extremes" conference Thursday.
April 18