Category Archives: Nonconforming

Hotel Issuance Drives Down CMBS Delinquencies: Fitch

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The U.S. commercial-mortgage backed security delinquency rate fell again in April, fueled by strong new issuance, according to Fitch’s latest index.

The dollar balance of late-pays fell from $17.8 billion in March to $17.75 billion.

Loan delinquencies dropped six basis points from 4.73% in March to 4.67% in April.

The delinquency drop came largely from the high volume of Fitch-rated new issuance in March eight transactions totaling $9 billion and thereby a rise in the index denominator.

Hotel loans, totaling $4.4 billion, mostly via single-borrower transactions, led the high volume of Fitch-rated new issuance in March that drove the delinquency rate down. Eight transactions totaling $9 billion showed a rise in the index denominator.

In April, portfolio runoff totaled $5.2 billion; in March, $5.1 billion.

New CMBS delinquencies finished April at $376 million, up from $357 million in March.

The largest new delinquency, $29 million, was reported as a nonperforming matured balloon loan.

The delinquency rate for hotel loans fell to 5.53% in April from 6.13% in March; for retail, 5.41% down from 5.46%; industrial, 5.29% from 5.57%; multifamily, 5.19% from 5.21%; office, 5% unchanged; mixed use, 2.59% from 2.69%; and for remaining loans 1.21% from 1.17%.

Article source: http://www.nationalmortgagenews.com/news/distressed/hotel-issuance-drives-down-cmbs-delinquencies-fitch-1050372-1.html

Inequality Grows with Declining Homeownership: NAR

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Increased wealth inequality among Americans is correlated with decreasing levels of homeownership, a new study from the National Association of Realtors reports.

Of 100 housing markets studied, 93 displayed a worsening homeownership rate between 2010 and 2013, according to the results released Thursday. Areas with lower homeownership rates consequently were found to have higher levels of wealth inequality, with Los Angeles, New York and Las Vegas among the metropolitan areas with the most unequal distribution of wealth.

Homeownership has fallen as weak labor markets, short housing supply and stringent underwriting standards have intervened, according to NAR chief economist Lawrence Yun.

“As a result, the country has become more unequal as the number of homeowners has fallen while the number of renters has significantly risen,” Yun said.

Renters have faced increased housing costs and are less likely to have invested in stocks during the market’s rebound in recent years. Meanwhile, those who have managed to buy homes have benefited from rising values and declining mortgage balances, the study found. In total, homeowners have reaped $5 trillion in housing wealth from the cyclical low of the housing downturn, Yun said.

To remedy inequality then, Yun pointed to the need for improved access to mortgage products and increased new home construction.

This “will help ensure the opportunity is there for more American households to enjoy the potential wealth benefits and long-term stability homeownership provides,” Yun said.

Article source: http://www.nationalmortgagenews.com/news/origination/inequality-grows-with-declining-homeownership-nar-1050350-1.html

Fannie Mae Earns $1.9B in the First Quarter

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Fannie Mae will pay the Treasury Department $1.8 billion after reporting net income of $1.9 billion for the first quarter.

The company, which was seized along with smaller rival Freddie Mac during the credit crisis in 2008, will have returned $138.2 billion to the federal government after it makes the payment next month, according to a regulatory filing Thursday.

“This was another quarter of strong financial performance,” Timothy Mayopoulos, Fannie Mae’s chief executive officer, said in a statement. “While we experienced some interest rate volatility again this quarter, we expect to remain profitable on an annual basis for the foreseeable future.”

Under terms of their conservatorships, Fannie Mae and Freddie Mac are required to turn over all profits above a minimum net worth threshold. The payments count as a return on the U.S. investment and not as repayment of the aid, leaving them no existing path out of U.S. control.

Article source: http://www.nationalmortgagenews.com/news/secondary/fannie-mae-earns-19b-in-the-first-quarter-1050238-1.html

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