Tag Archives: Federal Reserve

Credit quality of large loan commitments owned by domestic and foreign banks and nonbanks is on the rise for the third consecutive year, according to this year's Shared National Credits (SNC) Review. The review revealed that the volume of criticized loans (rated special mention, substandard, doubtful, or loss), while still historically high, fell to $295 billion, an 8.1 percent drop from 2011.

The Federal Reserve Bank of New York announced an important milestone Thursday the final sale of its remaining securities from the 2008 AIG bailout. The final sales from Maiden Lane III, one of the struggling mortgage-related portfolios the Fed usurped in 2008, brought the Fed's total profit from AIG securities to $6.6 billion. The final sales from Maiden Lane III, one of the struggling mortgage-related portfolios the Fed usurped in 2008, brought the Fed's total profit from AIG securities to $6.

A working paper released by the Federal Reserve Bank of Atlanta suggests that foreclosures may not negatively impact nearby property prices as much as originally thought. The paper examines and refutes the argument long used by experts that mortgage foreclosures greatly reduce the sale prices of properties in the area. The study actually found while neighboring home prices do tend to sink when a property becomes distressed, the effect is only minor.

Higher-risk mortgage loans may have a new set of rules to go by when it comes to appraisals. A proposed rule from six federal agencies would set out new requirements when conducting appriasals for higher risk mortgages. For example, the rule would require creditors to use a licensed or certified appraiser when preparing reports based on the physical inspection of a property.

The Federal Reserve announced Tuesday that it assessed a fine to MetLife for $3.2 million due to the life insurer's ""failure to adequately oversee its subsidiary bank's mortgage loan servicing and foreclosure processing operations.""

Commercial banks eased standards for residential mortgage loans to meet a sharp increase in demand in the second quarter, the Federal Reserve reported Monday in its quarterly survey of bank lending standards. According to the survey results, a net 52.5 percent of bank officers responding to the Senior Loan Officer Opinion Survey reported increased demand for traditional mortgage loans in the second quarter compared with a net 30.2 percent reporting stronger demand in the first quarter.

The deadline to request an Independent Foreclosure Review got its second extension in less than two months. In late June, the deadline was pushed back from July 31 to September 30, 2012. Now, borrowers have until until December 31, 2012 to request a foreclosure review, the Office of the Comptroller of the Currency (OCC) and the Fed announced Thursday.

Acknowledging economic activity decelerated somewhat over the first half of this year and growth in employment has been slow in recent months, the Federal Open Market Committee nonetheless decided Wednesday to take no new actions to stimulate growth. Concluding a two day meeting the FOMC instead said it would maintain its low interest rate policy and continue previously announced programs to reinvest proceeds of maturing Treasury securities it already holds and extend the average maturity of its portfolio.

In recent months, data from the Mortgage Bankers Association, Freddie Mac, Bankrate, and other firms has shown mortgage rates steadily falling, hitting new lows week after week in some measures. However, Capital Economics contends that there is actually little evidence to suggest that this activity is translating into heavier demand. While the Federal Reserve's Senior Loan Officer Survey reported rising demand for mortgage finance in the past three quarters, this increase in demand hasn't shown up in mortgage applications for home purchase, which have remained relatively flat.

The U.S. economy continued to expand at a modest to moderate pace in June and early July the Federal Reserve said Wednesday in its periodic Beige Book. The national summary, based on reports from each of the 12 Federal Reserve districts, noted modest growth in the Atlanta, St.