Risk

But a great deal of variation in distress levels were reported between individual markets and property sectors, according to two new reports.

When 55 banks were asked to provide metrics on the health of their commercial real estate borrowers, some of them gave data that was six months old. The survey by Moody's Investors Service also found that certain borrowers are already struggling, and others could hit trouble soon, since they'll need to refinance at high interest rates.

While a majority of current forborne borrowers sought relief for reasons related to COVID-19, servicers are seeing a growing share of cases involving natural disasters or personal financial issues, the Mortgage Bankers Association said.

Repossessions registered both monthly and annual increases, though, according to Attom.

Firms that had ratings cut included M&T Bank, Webster Financial, BOK Financial, Old National Bancorp, Pinnacle Financial Partners and Fulton Financial.

For large banks, the agencies wanted to go above the global standards for residential mortgages, as well as some business loans, to avoid giving those lenders a competitive advantage over smaller peers, according to another person familiar with the proposal.

Measures commonly used may not fully account for regional variations like those seen recently, a working paper by Federal Housing Finance Agency staff finds.

Originations have plummeted and while servicing revenue exists, it could be undermined by expenses if a typical recession follows last year's rate rise.

Single-family officials at an industry conference also quantified some of the progress they're making with alternative credit data, and noted that digital validations can help reduce defects.

Regional banks will need to implement holistic, sophisticated data and risk analysis technology following last month's bank runs, experts say.

In addition, delinquencies rose after receding the previous month, according to the latest report from Black Knight.

Institutions can borrow against par-valued securities that they would otherwise have to sell at a loss when there's a run on deposits, and it could have effectiveness beyond its actual usage.

There were many red flags before the California bank failed last week. Now the questions are: How did federal and state regulators assess the risks, and what actions did they take in response?

Mortgage-backed securities aren't generally considered risky assets, but how SVB managed them contributed to its woes.

The FDIC named Greg Carmichael, who retired last year as CEO of Fifth Third Bancorp, to run a bridge bank that will hold Signature's deposits and most of its assets.

The government-sponsored enterprises will likely have their mainstay bonds exempted from the potential securitization-related rule, but their credit-risk transfers could be subject to it, some experts say.

This line item has risen to its highest point since 2019, according to the Mortgage Bankers Association.

If he really wants to win reelection in 2024, President Biden and his administration should leave the mortgage industry in peace and find somebody else to torment, the Chairman of Whalen Global Advisors writes.

But the numbers still generally remain below pre-pandemic levels, according to Attom.