Standard Poor’s today cut its projection of U.S. CMBS issuance in 2012 to $35 billion from $45 billion. That would translate to flat growth from this year’s estimate. The agency reduced its forecast thanks to three consecutive months of rising spreads, an uncertain economic outlook and a slowdown in origination by lenders.
“We base our estimate on a regression of issuance volume on CMBS spreads and interest rates, with qualitative adjustments for factors such as maturing loans and portfolio sales,” the agency said in a release. Some $57 billion of CMBS matures in 2012, according to the agency.
SP reiterated prior predictions that CMBS deals next year could follow in the wake of recent large portfolio sales of real estate and loans that are both performing and non-performing.
Daily Briefing | Monday, October 16, 2011
CitiMortgage, Inspector General Clash Over Short Sales Program
CitiMortgage and HUD’s Office of Inspector General are at loggerheads over the proper way to vet at-risk borrowers for the Federal Housing Administration’s short sales program.
Refis Boost Wells Originations, While Credit Losses Continue
Historically low interest rates sparked an increase in refinance mortgage applications that helped Wells Fargo originate $89 billion in new residential loans during the third quarter of 2011. But troubled existing loans continue to impact results, with a 61% increase in Wells Fargo’s mortgage repurchase provision.
Citigroup Reports Higher Loan Production
Citigroup reported a 50% jump in residential mortgage originations in the third quarter along with a large writedown related to mortgage servicing rights.
Ginnie MBS Issuance Drops for Second Fiscal Year in a Row
Residential lenders issued $350.3 billion of Ginnie Mae MBS in fiscal year 2011, down 15% from the previous fiscal year, according to new figures released by the Government National Mortgage Association.
Pending Sales Follow Tradition in D.C. Market
The traditional fall slowdown in home sales has come to the strong Washington, D.C., market — but the region still registered a better-than-usual September.
HUD Selects Lenders Clearing House LV for its Neighborhood Stabilization Program
Real estate reseller Lenders Clearing House Las Vegas has been chosen to participate in the Neighborhood Stabilization Program to work with local banks in reducing their large REO inventories in order to revitalize the region’s foreclosure market.
Servicer Investing in Line of Credit
Loan servicer C-III Capital Partners LLC has committed to put $10 million into commercial real estate services firm Grubb Ellis Co., by investing in a line of credit issued earlier this year by Colony Capital LLC.
IMN ABS East ’11: Master Servicers Could do More, but at a Cost
Master servicers have been instrumental in dealing with the robosigning debacle in existing securitization deals, said participants at Information Management Network’s ABS East Conference on Sunday.
Why Mortgage Loans Have Emerged As Real Determinant In PFI
MADISON, Wis.-Credit unions need to make even stronger efforts to ramp up mortgage loans, according to one analyst.
Analysts Debate What Is To Be Done With Fannie Mae, Freddie Mac
The question of what should be done with Fannie Mae and Freddie Mac is drawing wildly different opinions.
Kinecta FCU Launches New Mortgage Center
Kinecta FCU, Manhattan Beach, Calif., is opening of a new mortgage center in Newbury Park, Calif., to serve members in San Fernando Valley, Ventura County and Santa Barbara County residents.