Items Tagged with 'Credit risk'

ARTICLES

  • Lenders slowly easing credit standards, hits highest level since 2013

    Credit availability still historically low
    Lenders are slowly easing their credit standards as credit risk hit its highest level since 2013, according to the latest Housing Credit Availability Index from the Urban Institute. The increase in the fourth quarter was driven primarily by credit expansions within both government-sponsored enterprises and government channels thanks to higher interest rates and lower refinance volumes.
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  • Fannie Mae completes first credit insurance risk transfer of 2018

    Transfers risk on $16.9 billion in single-family loans
    Fannie Mae announced it completed its first Credit Insurance Risk Transfer transaction of 2018, transferring risk on $16.9 billion in single-family loans. The deal, CIRT 2018-1, is part of the company’s ongoing effort to reduce taxpayer risk by increasing the role of private capital in the mortgage market.
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  • Movement Mortgage adds Stephen Polacek as chief credit officer

    Former KPMG executive will lead lender’s credit risk management
    Movement Mortgage, one of the nation’s largest purchase mortgage lenders, announced this week that it hired Stephen Polacek to serve as the company’s new chief credit officer. In this role, Polacek will oversee the lender’s credit risk management operation.
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  • Fannie Mae makes more information available for risk-sharing investors

    Will now make monthly loan-level disclosure data on for CIRT deals
    A recent report suggested that the government-sponsored enterprises’ risk-sharing deals will be a big target for investors in 2018. In order to provide investors with as much detail as possible, Fannie Mae announced this week that it is making additional disclosures about some of its risk-sharing deals.
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  • Credit availability hits highest level since 2016

    Lenders start move toward looser standards
    Credit availability edged up in the first quarter this year, but remains low by historical standards. In fact, the Urban Institute showed mortgage lending risk could double across all platforms, and still not be at the historic norms seen from 2001 to 2003.
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  • CoreLogic: Mortgage lending becomes riskier in Q1

    Risk levels similar to early 2000s
    Mortgages became more risky in the first quarter, but remain at pre-crisis norms seen in the early 2000s. Although CoreLogic’s index shows credit loosening over the past few months due to a shift toward refinance originations, the first quarter saw more purchase originations.
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  • Here's the final tally on Fannie, Freddie credit risk-sharing in 2016

    FHFA report details GSEs' efforts to offload risk
    In 2013, Fannie Mae and Freddie Mac began shifting credit risk to investors as part of a plan to reduce the overall risk of the government-sponsored enterprises, and therefore, the risk to the American taxpayers. And a new report published Monday by the Federal Housing Finance Agency shows how much progress the GSEs are making in their collective effort to protect the taxpayers from risk.
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  • Fannie Mae announces new front-end credit risk-sharing deal

    Deal with insurers provides up to $375 million in coverage
    Fannie Mae announced Friday that it executed its second front-end credit risk-sharing deal through its Credit Insurance Risk Transfer program. The deal provides insurance coverage on a maximum coverage of approximately $375 million from pools of single-family mortgages that carry a combined unpaid principal balance of approximately $15 billion.
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  • Regulators deny JPMorgan Chase, Redwood Trust securitization innovation

    Private market risk-sharing effort rejected by OCC
    Last year saw a bit of innovation in the private-label securitization market, as JPMorgan Chase launched a new securitization option where some of the risk on non-agency mortgages is transferred to the private market through a risk-sharing deal. But, the Office of the Comptroller of the Currency rejected the innovative securitization structure. What does it mean going forward?
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