Citing rising six-month default rates, Moody's Investors Service says the fallout from aggressive mortgage underwriting and a prolonged housing downturn will produce downward ratings pressure on subprime and alternative-A tranches of recent-vintage U.S. residential mortgage-backed securities.Moody's said six-month default rates have continued to rise significantly for loans backing RMBS issued in the third and fourth quarters of 2006. In addition, Moody's said new data show that deteriorating performance is also evident in 12-month default rates. For example, 12-month collateral defaults for subprime RMBS issued in the second quarter of 2006 rose to 7.39%, more than three times the average of 2.00% for subprime RMBS issued between the first quarter of 2002 and the second quarter of 2005, Moody's reported. The rating agency can be found on the Web at http://www.moodys.com.
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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.
5h ago -
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.
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While refinances are behind the latest increases, the pace of purchase activity may be a stronger indicator of where the housing market sits.
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The share of economists expecting a September rate reduction grew in the July Wolters Kluwer survey, but the October or later percentage also increased.
11h ago -
Rising home prices and softening sales offer a mixed view of a market that some say is shifting to favor buyers.
11h ago -
The notes are backed by home improvement installment loans originated by approved dealers in Foundation Finance Company's network.
11h ago