More than 600 classes of securities backed by subprime residential mortgages have been placed on CreditWatch with negative implications by Standard & Poor's Ratings Services, and S&P said a majority are expected to be downgraded.The rating agency reported that the 612 affected classes total approximately $12.08 billion in residential mortgage-backed securities, representing 2.13% of the $565.3 billion in U.S. RMBS rated by S&P from the fourth quarter of 2005 through the fourth quarter of 2006. The negative rating actions were attributed to "poor collateral performance, our expectation of increasing losses on the underlying collateral pools, the consequent reduction of credit support, and changes that will be implemented with respect to the methodology for rating new transactions." Among the changes in rating methodology are an increase in the "severity of the surveillance assumptions" (from 33% to 40%) used to evaluate creditworthiness and a greater likelihood that senior classes will be downgraded in transactions containing subordinate classes that have been downgraded, S&P said. The rating agency can be found online at http://www.standardandpoors.com.
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While home lenders are seeing a decrease in issues coming through mobile channels, phone fraud spiked last year, accounting for 28% of losses, a new report found.
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The massive mortgage business saw a first quarter profit mitigated by nearly $300 million in hedging losses.
April 24 -
The Consumer Financial Protection Bureau has seen excessive property-inspection charges, fees that loan mods should eliminate and improper line-item labels.
April 24 -
Michael Tannenbaum, whose experience in the financial services industry spans over 15 years, has a track record of helping companies scale and grow.
April 24 -
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