Home / Tag Archives: Fitch Ratings (page 10)

Tag Archives: Fitch Ratings

Fitch: GSEs’ Key Role in Recovery Limits Motivation for Reform

As the private sector struggles with regulatory uncertainty, Fannie Mae and Freddie Mac will continue to maintain their dominant role in the housing market, according to a report from Fitch Ratings. Since the GSEs act as key players in the market's fragile recovery, political motivation for far-reaching GSE reform has been limited, the rating agency explained. Although regulators and politicians have emphasized the need for the private sector capital to enter the mortgage market, Fitch said ""results have been disappointing.""

Read More »

Fitch: CMBS Loans in Special Servicing Down to 3-Year Low

The volume of underperforming CMBS loans in the hands of special servicers fell to the lowest level since 2009, Fitch Ratings reported. At the end of 2012, the volume of specially serviced CMBS loans decreased to $70.6 billion after peaking at $91.7 billion in 2010, according to the rating agency. Fitch attributed the decrease to a significant drop in the number of loans transferred to special servicing in 2012 and the high number of loan resolutions.

Read More »

Fitch Finds Weaknesses in Recent RMBS Transactions

While most representation and warranty guidelines for recent residential mortgage-backed securities (RMBS) have been substantially stronger than observed in pre-crisis transactions, according to Fitch, the ratings agency has begun to encounter some proposals that fall short of the industry's recently-enhanced standards. Fitch is a strong proponent of the American Securitization Forum's Project Restart, which created a rep and warranty framework following the housing crisis. According to Fitch, the framework offers ""a high standard that provides the most assurances about loan origination and underwriting quality."" Some of the most recent RMBS transactions the agency reviewed stray from these guidelines and are ""weak,"" according to Fitch.

Read More »

Fitch: Market Poised for Bulk Sales in Commercial Sector

The market is now poised for many banks to begin unloading nonperforming assets--particularly commercial real estate--in the form of bulk sales, according to Fitch Ratings. Tightening yield spreads in the commercial market, pressure from regulators regarding loss reserve positions, and limited financing will prompt banks to unload nonperforming commercial assets over the next 12 to 18 months, according to the ratings agency.

Read More »

Fitch: CMBS Delinquencies Fall Again; Georgia Remains ‘Problem Spot’

The national delinquency rate for commercial mortgage-backed securities (CMBS) began the year with another decline, marking the eighth consecutive month of decreases, according to Fitch Ratings. The rating agency, however, noted regional struggles in Georgia. In January, the CMBS delinquency rate fell 8 basis points, ending the month at 7.91 percent. January's CMBS delinquency rate is now at the lowest level since October 2010, when the rate stood at 7.78 percent.

Read More »

Fitch: Potential Impact of CFPB’s New Servicing Rules

The new servicing rules recently issued by the Consumer Financial Protection Bureau (CFPB) will benefit the mortgage servicing industry by creating uniform standards, but it will also increase compliance costs for the servicers, which will put pressure on smaller-sized entities, according to a report from Fitch Ratings. ""[S]imilar to other servicing-focused initiatives, the CFPB rules will further increase compliance costs for the industry, extend timelines, and potentially drive further consolidation within mid to smaller servicers,"" Fitch stated.

Read More »

Fitch: U.S. RMBS Delinquencies Improve in Q4

Serious delinquencies for U.S. RMBS improved across all sectors in the fourth quarter of 2012, according to a new mortgage market index from Fitch Ratings. Furthermore, the agency expects RMBS delinquencies to continue declining this year. According to Fitch, the improvement ""reflects positive selection in the remaining pools, loan modification efforts by servicers, and positive home price trends.""

Read More »

Fitch: QM Rule to Benefit Jumbo Prime Market

Now that the industry has its long-awaited ""qualified mortgage"" (QM) definition, Fitch Ratings believes jumbo prime securities are poised to see a jump start. While many analysts anticipate a kick start in lending and securitization now that the rules are clear, Fitch asserts most of the underwriting guidelines suggested have already been put into practice since the financial crisis. However, the ratings agency sees the QM definition as a boon for the jumbo prime market.

Read More »

CMBS Delinquency Rate Falls for 7 Straight Months: Fitch

The delinquency rate for commercial mortgage-backed securities (CMBS) managed to slip below 8 percent before the close of 2012, while the multifamily sector led with the biggest decline for the year, Fitch Ratings reported Friday. In December, the U.S. CMBS delinquency rate declined to 7.99 percent after falling 18 basis points (bps) from 8.17 percent in November, according to Fitch's index.

Read More »

Fitch: BofA’s MSR Sales Indicate New Trend Among Big Banks

Following Bank of America's announcement of a $306 billion sale of mortgage servicing rights (MSRs) Monday and amid talk of more MSR sales from the bank Thursday, Fitch suggests BofA may not be alone in its strategy of unloading MSRs. ""We believe that other banks with large MSR assets may also begin to complete sales or pursue other strategies to limit their size on bank balance sheets,"" Fitch said this week. Fitch specifically points to Wells Fargo and JP Morgan as banks likely to fall in line with BofA's approach.

Read More »