The long-term issuer default rating and the senior unsecured debt rating of Residential Capital LLC have been downgraded from BB-plus to BB-minus by Fitch Ratings. In addition, Fitch downgraded ResCap's subordinated debt rating from BB-minus to B-minus. All the ratings, including the company's short-term IDR and short-term debt rating (both B) remain on Rating Watch Negative, Fitch said. "This action follows ResCap's extremely difficult 2007 and uncertain prospects for 2008," the rating agency said. "While ResCap has aggressively addressed near-term liquidity issues, the company's return to even a modicum of sustainable profitability in 2008 would be difficult if mortgage market dislocation continues."
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The new Financial Stability Oversight Council report also recommends an expanded Ginnie Mae PTAP facility and an industry-funded liquidity resource.
4h ago -
The publicly traded title holding companies all had stronger earnings as the mortgage market improved from one year prior.
5h ago -
One in every 37 residential properties nationwide had a loan-to-value ratio of 125% or greater to begin the year, according to a new report.
5h ago -
There's temporary leeway on formal compliance with replacement-cost value requirements in order to sort out insurer concerns with a recent re-emphasis on them.
6h ago -
Max Levchin, CEO of the buy now/pay later lender, said recent tests show young adults prefer interacting with intelligent chatbots over phone-based agents, but the company doesn't foresee major cost savings from generative AI for a few more years.
8h ago -
Test your knowledge of the biggest mortgage headlines of the week. No. 2 pencil not required!
May 10