Two classes of Residential Asset Securities Corp. home equity transactions have been downgraded by Fitch Ratings and removed from Rating Watch Negative.Class M-I-3 of RASC series 2001-KS2 group 1 was downgraded from BBB to BB, and class M-I-3 of RASC series 2001-KS3 group 1 was downgraded from BBB to BBB-minus. The rating actions were attributed to a decline in overcollateralization caused by monthly losses that exceeded monthly excess interest.
The agency proposed to repeal a regulation that requires FHLBanks to submit formal notices before engaging in new business activities that carry unmanaged risk.
So far this year, the volume of closed-end second and home equity line of credit securitizations is near last year's $29 billion, Bank of America Securities said.
Home price growth is accelerating as inventory stalls—Chicago and Pittsburgh lead mid-tier gains at 4.2%, while Denver and Las Vegas see supply-driven price corrections.
The industry leaders are sparring over refinance business from a Mr. Cooper portfolio, and UWM contends it didn't specifically try to harm its rival.
The trade group supports FHFA's overhaul but urges longer comment periods, more flexibility and protections to prevent unintended consequences.
The drop in the annual metric for FHA loans was the biggest in over four years but other performance indicators ICE Mortgage Technology tracked were mixed.
