Moody's
By Carrie Bay | 03/05/2012
Consumer credit data suggests spending will increase and the housing market will begin to emerge from its slump this year, according to Equifax and Moody's Analytics. Both companies note that as key market data align with pre-recession totals, consumers should anticipate steady economic growth for major credit sectors, including auto, bank card, and consumer finance. While the mortgage lending sector continues to see the highest percentage of delinquencies, it too is showing signs of increased traction in the coming months.
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By Krista Franks Brock | 02/03/2012
Each month of 2011, outstanding mortgage balances in the U.S. declined by an average of $30 billion, according to a recently released report from Moody's Analytics and Equifax. The report attributes the decline to defaulted loans being written off. Aggregate delinquency rose by 6 basis points in December to 6.12 percent, according to the companies' joint study. The rate remains in line with rates seen since April but has declined since a January high of 8.25 percent.
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By Krista Franks Brock | 01/23/2012
As robo-signing reviews reach completion, servicers are beginning to work through some of their foreclosure backlogs, according to a third-quarter report from Moody's Investors Service. At the same time, the ratings agency found that loan modifications are on the decline. Servicers are now turning to loss mitigation alternatives such as short sales and deeds in lieu, Moody's says. The agency is also forecasting longer timelines this year to move properties from foreclosure sale to REO liquidation.
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By Carrie Bay | 01/20/2012
The delinquency rate on loans included in commercial mortgage-backed securities (CMBS) transactions increased by five basis points in December to 9.32 percent, according to Moody's Investors Service. At the same time, the rate of loans in special servicing declined by 13 basis points. December was the 12th consecutive month that CMBS delinquencies have been above 9 percent, by Moody's assessment. Bank of America Plaza in Atlanta, Georgia, with an outstanding balance of $363 million, was the largest newly delinquent loan in December.
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By Carrie Bay | 01/12/2012
The performance of private-label residential mortgage-backed securities (RMBS) continues to face many challenges in 2012, with the biggest risk posed by strategic defaults, according to Moody's. The ratings agency says the performance of loan pools backing outstanding RMBS has begun to stabilize, with delinquency levels flat or even dropping as a result of modifications and re-default rates declining. It's the threat of strategic default, particularly in the prime jumbo sector, that has Moody's analysts worried.
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By Carrie Bay | 12/23/2011
Moody's Analytics' chief economist Mark Zandi has lowered his expectations for the growth of the U.S. economy into 2012. He says GDP will grow 2.6 percent next year and unemployment will likely remain high. Zandi and his colleagues at Moody's expect the U.S. economy to perform a bit better in 2012, but they say the outcome will depend on policy decisions coming out of both Europe and Washington.
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By Carrie Bay | 12/15/2011
Low property valuations and steep sales discounts reduce the proceeds from liquidated loans by almost a third, according to Moody's Investors Service. As home prices drop, equity erosion drives most of the losses incurred on defaulted loans, but Moody's says in today's environment that's not the whole story. The agency's analysis of 46,000 loans liquidated since 2007 found that on average, a foreclosed property will be valued about 18 percent lower than average home prices, and will be subject to an additional sales discount of about 15 percent.
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By Krista Franks | 11/22/2011
September marked the 20th consecutive month that distressed sales made up more than 20 percent of commercial property sales, according to Moody's/REAL Commercial Property Price Index. The index reported distressed transactions for the month accounted for 25.9 percent of all commercial transactions. While distressed sales were in keeping with recent trends, commercial property prices broke a four-month streak of increases with a 1.4 percent decline in September, according to Moody's.
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By Carrie Bay | 11/04/2011
Private investors in residential mortgage-backed securities (RMBS) comprised of jumbo mortgage loans are dealing with a greater risk of strategic defaults, according to Moody's Investors Service. The company's analysts base this assumption on the fact that jumbo RMBS have large populations of current borrowers with high loan-to-value (LTV) ratios. In contrast, the subprime sector faces the lowest potential for future performance deterioration because its weaker borrowers are already delinquent or have defaulted.
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By Carrie Bay | 10/24/2011
Commercial real estate prices in the U.S. rose 2.4 percent between July and August, Moody's Investors Service reported Monday. The agency's index has risen in each of the last four months, and that monthly boost pushes its reading 15.3 percent above this cycle's low set in April 2011. Much of the improvement in August came from a reduction in the share of distressed deals changing hands, which were 21.7 percent of transactions. That's the lowest distressed reading since January of 2010.
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