Fitch said Thursday it sees little risk of a negative rating impact on CMBS from the closure of 100 to 120 unspecified Sears and Kmart stores across the U.S., but noted there is some exposure in the commercial mortgage-backed securities universe to the concern.
The rating agency said it identified 255 Fitch-rated loans with a Sears or Kmart entity listed as a tenant. The total value of these loans is $7.74 billion. Of those loans, 27 are single-tenant facilities secured by a Sears or Kmart. Those loans total $156.8 million.
The majority of these single-asset loans are in diversified transactions issued between 2005 and 2008. The portfolio concentrations of these loans range from less than one percent to 9.11%.
The highest single tenant concentration is secured by a stand-alone Kmart property located in the Kahului section of Maui, HI. The property secures a $5.26 million loan in the Mortgage Capital Funding Inc. 1998-MC2 transaction. Fitch said it believes that this transaction has sufficient credit support in the class rated ‘B+’ to absorb a total loss of the loan without impacting investment-grade ratings.
Fitch said it would continue to monitor the developments concerning Sears Holdings.
Daily Briefing | Thursday, December 29, 2011
Extension of MI Tax Deduction Uncertain
Numerous tax provisions including the mortgage insurance tax deduction will expire Jan. 1 because Congress did not pass its annual tax extension bill before the lawmakers left town Dec. 23.
GSE Guarantee Fee Hike Coming April 1
The Federal Housing Finance Agency has directed Fannie Mae and Freddie Mac to implement a congressionally mandated increase in their loan guarantee fees on April 1.
Realtors Report Signals Higher Sales in Coming Months
A leading indicator of future home sales jumped 7.3% in the November to its highest level in over 19 months, according to the National Association of Realtors.
Rates Ending Year Near Historic Lows
Average weekly fixed rates for mortgages inched up a bit but still are ending the year near their all-time historic lows, according to Freddie Mac.
Hawaii Homeowners Obtaining the Highest Loans
The highest average residential home loan amount is given to homeowners who live in Hawaii, according to data from LendingTree.
Another High-Rise Starts in South Florida
The fourth of 20 high-rise condominiums planned for the tri-county South Florida market is now in the ground.
Mortgage Loan Processor Admits to $3.5 Million Fraud Scheme
A Rhode Island mortgage loan processor with National City Mortgage Co. has pleaded guilty to participating in a straw-borrowing scheme that brought in more than $3.5 million in fraudulently obtained mortgages.
FDIC Focus Evolves From Failures to Dodd-Frank
The FDIC, which has seen nearly 100 banks fail during 2011, is projecting that figure may rise again in 2012.
Will Honeymoon Period for CFPB End in 2012?
Despite the hand-wringing and nail-biting, the Consumer Financial Protection Bureau made it through 2011 without any major confrontation with the banking industry.