Category Archives: Nonconforming

Hotel Issuance Drives Down CMBS Delinquencies: Fitch

Print

Email

Reprints

Comment

Twitter

LinkedIn

Facebook

Google+

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

Print

Email

Reprints

Comment

Twitter

LinkedIn

Facebook

Google+

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

Print

Email

Reprints

Comment

Twitter

LinkedIn

Facebook

Google+

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

Investors Shift to Multifamily Properties as Market Recovers

Print

Email

Reprints

Comment

Twitter

LinkedIn

Facebook

Google+

Real estate investors are shifting their purchases to multifamily properties as the number of available distressed single-family homes for sale has been depleted over the past two years, according to the 2015 California Investor Survey by the California Association of Realtors.

In the past year 21% of investors purchased in multifamily properties, increasing from 19% in 2014 and 14% in 2013, according to the report.

Further, 80% of investor transactions were nondistressed, compared to 70% in 2014, reflecting the recovering housing market.

Consistent with these findings, the median sales price increased to$375,000in 2015, up from$320,000in 2014 and$292,000in 2013.

With a lack of inventory of lower-priced properties, investors are also shifting to higher-priced properties. The survey shows that of the properties purchased, 23% ranged between$501,000 to $1 million, up from 16% in 2014; 9% were above$1 million, up from 8% in 2014.

Price and location were among the top reasons that investors cited for buying now. Future development potential and size were also cited.

Article source: http://www.nationalmortgagenews.com/news/distressed/investors-shift-to-multifamily-properties-as-market-recovers-1050271-1.html

Mortgage Delinquencies Decline to Precrisis Levels

Print

Email

Reprints

Comment

Twitter

LinkedIn

Facebook

Google+

Quarterly delinquency rates hit their second lowest rate since 2007-2008’s real estate meltdown, according to the Mortgage Bankers Association.

Delinquencies dropped to a seasonally adjusted rate of 5.54%, 57 basis points below last year’s first quarter and 14 points below 2014’s fourth quarter. Foreclosures remained stable from last year, however, at 0.45% of loans.

The serious delinquency rate, which the MBA defines as loans over 90 days past due, decreased 80 basis points year-over-year and 28 basis points from the previous quarter.

“Delinquency rates and the percentage of loans in foreclosure continued to fall in the first quarter and are now at their lowest levels since 2007,” said Joel Kan, the MBA’s associate vice president of industry surveys and forecasting, in a release accompanying the figures.

“The job market continues to grow, and this is the most important fundamental improving mortgage performance. Additionally, home prices continued to rise, as did the pace of sales, thus increasing equity levels and enabling struggling borrowers to sell if needed.”

The legacy of poor underwriting prior to 2008 continues to haunt the mortgage industry. According to Kan, 73% of delinquent or foreclosed mortgages were originated before 2007.

Article source: http://www.nationalmortgagenews.com/news/distressed/mortgage-delinquencies-decline-to-precrisis-levels-1050233-1.html

White Mountains Backs OneTitle for $13M

Print

Email

Reprints

Comment

Twitter

LinkedIn

Facebook

Google+

White Mountains Insurance Group has agreed to provide up to $13 million in capital to OneTitle National Guaranty Co. in exchange for a minority equity position. The deal is currently pending regulatory approval.

OneTitle is a New York title insurance underwriter that works directly with attorneys, lenders, developers and homeowners. The company expects this deal will be able to help it expand its footprint beyond New York and accelerate its growth.

“Leveraging this investment and their insurance expertise, we will be able to bring better service and lower rates to even more attorneys, lenders, real estate investors and homeowners,” said founder, president and CEO Daniel Price.

White Mountains has a $3.8 billion market cap, $10.5 billion in assets and $4 billion in common shareholders’ equity.

Among the most successful innovators it’s backed are Esurance from 2000 until its sale to Allstate in 2011. White Mountains’ operating segments include Sirius Group, OneBeacon and HG Global/BAM.

Article source: http://www.nationalmortgagenews.com/news/origination/white-mountains-backs-onetitle-for-13m-1050223-1.html

Nationstar Posts $48M Loss, Announces SolutionStar Transformation

Print

Email

Reprints

Comment

Twitter

LinkedIn

Facebook

Google+

Nationstar Mortgage Holdings swung to a significant loss as the servicing segment’s income fell due to higher prepayments amidst the decline in interest rates and lower benefits.

Dallas-based Nationstar reported a $48 million net loss for the first quarter, as compared with net income of $24 million and $19 million for the first and fourth quarters of 2014, respectively. Losses per share totaled 53 cents versus the average estimate of analysts polled by Bloomberg of 73 cents in earnings per share.

The servicing segment’s $105.7 million loss largely caused the overall net loss the company posted for the first quarter. Prepayments in the servicing segment rose by $17 million. Additionally, the segment experienced a $110 million decrease in fair value mark-to-market adjustments. The servicing portfolio grew 2%, however, during the quarter to $390 billion, following $24 billion in acquisitions.

The origination segment managed to offset some of the servicing segment’s losses, with pretax income rising to nearly $59 million from $46.5 million the quarter prior. This unit benefitted from a favorable interest rate environment, with the company funding $4.2 billion in volume during the quarter.

Meanwhile, the company’s Solutionstar segment’s income slipped slightly to $31.6 million from nearly $34 million during the fourth quarter. The segment sold roughly 5,500 properties despite poor weather conditions in February and held more than 9,000 properties in inventory at the end of the quarter.

Nationstar further announced plans to rebrand the Solutionstar segment as Xome, fitting in the with company’s efforts to rethink the residential real estate marketplace. Xome focuses on the digital experience for residential real estate, comprising a search platform, data that includes more than 85% of all active MLS listings and a transactional marketplace.

The Web and mobile platform will also aid consumers in finding an agent, procuring a mortgage and closing transactions. Nationstar added that it hopes to integrate a home valuation model into Xome as well.

Nationstar chief executive Jay Bray said that the company believes Xome will “revolutionize the way real estate transacts.”

Article source: http://www.nationalmortgagenews.com/news/servicing/nationstar-posts-48m-loss-announces-solutionstar-transformation-1050225-1.html

Fewer Owner-Occupants Bought Homes in First Quarter

Print

Email

Reprints

Comment

Twitter

LinkedIn

Facebook

Google+

The share of owner-occupant single-family home and condo buyers fell to a new low, according to data from RealtyTrac.

RealtyTrac’s Cash, Investor Distressed Sales report found that owner-occupant buyers represented just 63.2% of all residential property sales, the lowest level since the housing information provider began tracking these sales.

“Investor activity continues to represent a disproportionately high share of all home sales activity in this housing recovery, but unlike the past three years the large institutional investors are backing out while the smaller, midtier and mom-and-pop investors are remaining active,” said Daren Blomquist, vice president at RealtyTrac, in a May 1 press release.

Institutional investors purchased 14,621 single-family homes, or 3.4% of all sales. This figure is down from 6.2% the previous year.

Memphis, Tenn., had the highest share of institutional buyers of any metropolitan area with more than 500,000 people at 14.1%. The metropolitan area with the highest share of overall investor purchases meanwhile was Cape Coral, Fla., at 60.4%.

Additionally, all-cash transactions declined to a new low of 25.9%, down from 30.3% in the linked quarter. The share of non-owner-occupied purchases made all in cash decreased to 44.7% from 61% a year ago, according to the RealtyTrac report.

“A growing number of investors are not buying all-cash, but instead are taking advantage of the broader set of financing options now available to them,” Blomquist added.

Florida cities constituted the five metropolitan areas with the highest percentage of all-cash sales, as Miami came out on top with 51.5%.

The report also found that the U.S. median home price rose 8% year-over-year, to $175,000 in March. Distressed median home process increased 7% during this same time period to $120,000, while nondistressed properties had a median sales price of $190,000 for the month.

Article source: http://www.nationalmortgagenews.com/news/origination/fewer-owner-occupants-bought-homes-in-first-quarter-1050214-1.html

May CMBS Conduit Pipeline Building with Three Deals

Print

Email

Reprints

Comment

Twitter

LinkedIn

Facebook

Google+

Credit Suisse, Deutsche Bank and Wells Fargo are first are marketing nearly $4 billion in commercial mortgage-backed securities via three conduits slated to price the first week of May.

Credit Suisse’s deal, CSAIL 2015-C2, pools 117 commercial mortgages worth $1.4 billion that are secured by 160 properties, according to the Kroll Bond Ratings Agency.

The pool has heavy concentration of retail properties: 40%. The largest loan in the pool is a $95 million loan secured by Westfield Wheaton, a 1.6 million square foot regional mall and shopping center located in Wheaton, Md., approximately 10 miles northwest of Washington.

The top five loans also include 9200 and 9220 Sunset (2nd largest, 6.5%), Soho-Tribeca Grand Hotel Portfolio (3rd largest, 4.7%), Residence Inn Beverly Hills (4th largest, 3.5%) and Westfield Trumbull (5th largest, 2.5%).

Over half of the pool is comprised of loans that, while they amortize throughout their terms, repay most of the principal in a final balloon payment. The rest of the loans pay only interest, and no principal, for either part (26.7%) or all (22.9%) of their terms.

Kroll calculates the overall loan-to-value ratio of the trust at 104.7%. That’s above than the LTVs of the 19 CMBS conduits it has rated in the last six months. Higher leverage implies lower borrower equity levels, greater default probability, and higher overall loss severity should a default occur.

Eight loans (12.7%) are secured by properties encumbered by additional, subordinate secured debt (7.7%) or permit future additional debt in the form of mezzanine financing (5%). This is below the average amount of existing debt for the CMBS conduits rated by Kroll over the past six months, which ranged from 6.6% to 46%.

Deutsche Bank and Cantor Fitzgerald’s COMM 2015-CCRE 23 will offer $1.27 billion of commercial mortgage-backed securities, according to a deal prospectus issued by the bank.

The deal pools 83 loans that are secured by 220 properties. Over 60% of the loans pay only interest for either part (36.3%) or all (31.5%) of their terms.

Morningstar, Moody’s Investors Service and DBRS assigned preliminary ratings to the deal. All three rate the senior tranche at triple-A. However, Moody’s has assigned an Aa2 rating to the class A-M notes, which benefit from credit support of 22.6%. That’s two notches lower than DBRS and Morningstar. And Moody’s is not rating any of the junior notes.

Deutsche Bank and Cantor were last in the CMBS market in mid-March with COMM 2015-CCRE22. The A-M notes of that deal, which benefit from 24% subordination, pay 115 basis points over swaps.

Wells Fargo is marketing $1.1 billion of commercial mortgage-backed securities via Wells Fargo Commercial Mortgage Trust 2015-C28, according a regulatory document.

At the beginning of March, Wells Fargo priced $927 million of commercial mortgage securities via its Wells Fargo Commercial Mortgage Trust 2015-C27 series, according to a pricing document.

The issuer paid swaps plus 87 basis points on the 10-year, super-senior tranche, near the average of the last three deals that priced in February. DBRS, Kroll Bond Rating Agency and Moody’s Investor Service rated the senior bonds.

Article source: http://www.nationalmortgagenews.com/news/secondary/may-cmbs-conduit-pipeline-building-with-three-deals-1049995-1.html

LendingTree Again Posts Record Revenue

Print

Email

Reprints

Comment

Twitter

LinkedIn

Facebook

Google+

Continuing its strong performance from the previous quarter, LendingTree reported record revenue in both its mortgage and non-mortgage lead generation business for the first quarter.

The online loan lead aggregator posted net income of $5.2 million, in contrast with a $6.4 million net loss during the same period last year. Earnings per share totaled 44 cents, far exceeding the average estimate of analysts polled by Bloomberg by 19 cents.

Total revenue grew 27%, to $50.9 million. Both LendingTree’s mortgage and non-mortgage lines of business posted record revenue. Mortgage revenue rose 8% to $37 million, while non-mortgage revenue more than doubled to $13.9 million.

The Charlotte, N.C.-based company also noted that it saw higher enrollment in My LendingTree. More than 900,000 consumers have joined the personalization platform, up from 600,000 in February.

Looking ahead, LendingTree chief financial officer Alex Mandel previewed expanded marketing initiatives, in an effort to brand LendingTree as “the place to shop for money.”

“We anticipate debuting new TV spots late in the quarter in support of our full suite of loan and credit categories and the compelling value proposition offered by My LendingTree enrollment,” Mandel said.

For the full-year 2015’s guidance, LendingTree has raised revenue expectations to between 21% and 24% growth, or between $202 million and $208 million, from previous estimates that expected growth only as high as 20%.

Article source: http://www.nationalmortgagenews.com/news/origination/lendingtree-again-posts-record-revenue-1050064-1.html

WP Facebook Auto Publish Powered By : XYZScripts.com
Bunk Beds