United States housing bubble

INVESTOR ALERT: Kirby McInerney LLP Reminds Investors That a Class Action Lawsuit Has Been Filed Against Credit Acceptance Corporation

Friday, October 23, 2020 - 11:28pm

Credit Acceptance used high-risk loans to top off loan pools that it packaged and securitized.

Key Points: 
  • Credit Acceptance used high-risk loans to top off loan pools that it packaged and securitized.
  • When the market learned the truth about Credit Acceptance, investors suffered damages.
  • Kirby McInerney is a New York-based plaintiffs law firm concentrating in securities, antitrust, and whistleblower litigation.
  • This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

KBRA Assigns Preliminary Ratings to Ellington Financial Mortgage Trust 2020-2 (EFMT 2020-2)

Thursday, October 22, 2020 - 6:44pm

Kroll Bond Rating Agency, LLC (KBRA) assigns preliminary ratings to six classes of mortgage-backed notes from Ellington Financial Mortgage Trust 2020-2 (EFMT 2020-2), a $219.7 million non-prime RMBS transaction.

Key Points: 
  • Kroll Bond Rating Agency, LLC (KBRA) assigns preliminary ratings to six classes of mortgage-backed notes from Ellington Financial Mortgage Trust 2020-2 (EFMT 2020-2), a $219.7 million non-prime RMBS transaction.
  • Ellington has purchased all but 48 loans in the pool from its affiliated originator LendSure Mortgage Corp. (LendSure).
  • The remaining loans (26.6%) were categorized as being exempt from the ATR/QM rule having been originated for a business purpose (i.e., investment properties).
  • The pool has a non-zero weighted average (NZWA) original credit score of 720 and a WA debt-to-income (DTI) ratio of 35.9%.

Mortgage Rates Continue to Trend Down

Thursday, October 22, 2020 - 3:00pm

Mortgage rates remain very low, providing homeowners who have not already taken advantage of this environment ample opportunity to do so, said Sam Khater, Freddie Macs Chief Economist.

Key Points: 
  • Mortgage rates remain very low, providing homeowners who have not already taken advantage of this environment ample opportunity to do so, said Sam Khater, Freddie Macs Chief Economist.
  • Mortgage rates today are on average more than a full percentage point lower than rates over the last five years.
  • 15-year fixed-rate mortgage averaged 2.33 percent with an average 0.6 point, down from last week when it averaged 2.35 percent.
  • Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage.

Black Knight's First Look: Serious Delinquencies Improved in September for the First Time Since the Start of the Pandemic

Thursday, October 22, 2020 - 2:00pm

*Non-current totals combine foreclosures and delinquencies as a percent of active loans in that state.

Key Points: 
  • *Non-current totals combine foreclosures and delinquencies as a percent of active loans in that state.
  • Totals are extrapolated based on Black Knight's loan-level database of mortgage assets.
  • All whole numbers are rounded to the nearest thousand, except foreclosure starts, which are rounded to the nearest hundred.
  • For more information about gaining access to Black Knight's loan-level database, please send an email to Mortgage.Monitor@bkfs.com .

HardFunded.com is Announcing a New Construction Loan Program That Finances Up to 90% of Loan To Cost (LTC) to Meet an Increase in Demand for New Construction Loans. Released Numbers Show That the COVID-19 Pandemic Caused Only a Temporary Drop in Housing S

Thursday, October 22, 2020 - 1:38pm

There was a significant but temporary drop in new construction loan requests on the HardFunded.com platform in March and April of 2020, but the drop-in loan requests were temporary.

Key Points: 
  • There was a significant but temporary drop in new construction loan requests on the HardFunded.com platform in March and April of 2020, but the drop-in loan requests were temporary.
  • Recent government-released data shows that privately-owned housing starts in August were at a seasonally adjusted annual rate of 1,416,000, above the August 2019 rate of 1,377,000.
  • There are currently hundreds of companies that operate in the private lending or hard-money lending space.
  • Borrowers navigating the highly fragmented space sometimes find it difficult finding a lender who can serve their unique needs.

Trepp Announces RMS Integration to Give CMBS Investors Access to Environmental Risk Measures

Wednesday, October 21, 2020 - 5:10pm

The Trepp integration of RMS solutions provides an environmental risk score for properties backing commercial mortgage-backed securities (CMBS) loans.

Key Points: 
  • The Trepp integration of RMS solutions provides an environmental risk score for properties backing commercial mortgage-backed securities (CMBS) loans.
  • For years, RMS has provided accurate, holistic risk scoring to the insurance markets to support quantifying the potential cost of disasters like Category 5 hurricanes and similar environmental catastrophes.
  • "The Trepp implementation of RMS will be an important tool for investors tasked with measuring, improving, or ranking the climate change-related portion of a firm's environmental risk as part of their environmental, social, and governance (ESG) strategy," said Steve Baumgartner, Trepp's Chief Innovation Officer.
  • Using RMS property loss and business interruption data, Trepp has identified the geographic distribution of risks across properties backing CMBS loans.

AM Best Comments on Credit Ratings of Peak Reinsurance Company Limited Following Disclosure on Securities Issuance

Wednesday, October 21, 2020 - 4:10pm

AM Best has commented that the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of a- of Peak Reinsurance Company Limited (Peak Re) (Hong Kong) and its subsidiary, Peak Reinsurance AG (Switzerland), remain unchanged following the disclosure of an issuance of perpetual subordinated guaranteed capital securities (securities).

Key Points: 
  • AM Best has commented that the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of a- of Peak Reinsurance Company Limited (Peak Re) (Hong Kong) and its subsidiary, Peak Reinsurance AG (Switzerland), remain unchanged following the disclosure of an issuance of perpetual subordinated guaranteed capital securities (securities).
  • These securities will be issued by Peak Re (BVI) Holding Limited and be unconditionally and irrevocably guaranteed on a subordinated basis by Peak Re.
  • AM Best views the issuance to further strengthen Peak Res risk-adjusted capitalisation over the intermediate term and at the current rating level.
  • For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Bests Credit Ratings .

KBRA Assigns Preliminary Ratings to GS Mortgage Securities Corporation Trust 2020-TWN3

Tuesday, October 20, 2020 - 10:23pm

Kroll Bond Rating Agency (KBRA) announces the assignment of preliminary ratings to 11 classes of GS Mortgage Securities Corporation Trust 2020-TWN3, a CMBS single-borrower securitization.

Key Points: 
  • Kroll Bond Rating Agency (KBRA) announces the assignment of preliminary ratings to 11 classes of GS Mortgage Securities Corporation Trust 2020-TWN3, a CMBS single-borrower securitization.
  • In addition, KBRA also relied on its Global Structured Finance Counterparty Methodology for assessing counterparty risk in this transaction, to the extent deemed applicable.
  • The results of our analysis yielded a KBRA net cash flow (KNCF) for the portfolio of roundly $29.8 million.
  • To value the portfolio, we applied a blended capitalization rate of 12.21% to arrive at a KBRA value of approximately $244.4 million ($34,229 per key).

ARMOUR Residential REIT, Inc. Third Quarter 2020 Webcast Scheduled for October 22, 2020

Tuesday, October 20, 2020 - 9:15pm

VERO BEACH, Florida, Oct. 20, 2020 (GLOBE NEWSWIRE) -- ARMOUR Residential REIT, Inc. (NYSE: ARR and ARR-PRC) (ARMOUR or the Company) announced today that it will provide an online, realtime webcast of its conference call with equity analysts covering third quarter 2020 operating results on Thursday, October 22, 2020.

Key Points: 
  • VERO BEACH, Florida, Oct. 20, 2020 (GLOBE NEWSWIRE) -- ARMOUR Residential REIT, Inc. (NYSE: ARR and ARR-PRC) (ARMOUR or the Company) announced today that it will provide an online, realtime webcast of its conference call with equity analysts covering third quarter 2020 operating results on Thursday, October 22, 2020.
  • The Company will issue its third quarter 2020 earnings release after the close of trading on Wednesday, October 21, 2020.
  • The live broadcast will be available at https://www.webcaster4.com/Webcast/Page/896/38081 on October 22, 2020, beginning at 8:30 a.m. (Eastern Time).
  • ARMOUR invests primarily in fixed rate residential, adjustable rate and hybrid adjustable rate residential mortgage-backed securities issued or guaranteed by U.S.

First Trust Mortgage Income Fund Declares Its Monthly Common Share Distribution of $0.06 Per Share for November

Tuesday, October 20, 2020 - 9:35pm

First Trust Mortgage Income Fund (the "Fund") (NYSE: FMY) has declared the Funds regularly scheduled monthly common share distribution in the amount of $0.06 per share payable on November 16, 2020, to shareholders of record as of November 3, 2020.

Key Points: 
  • First Trust Mortgage Income Fund (the "Fund") (NYSE: FMY) has declared the Funds regularly scheduled monthly common share distribution in the amount of $0.06 per share payable on November 16, 2020, to shareholders of record as of November 3, 2020.
  • The Fund is a diversified, closed-end management investment company that seeks to provide a high level of current income.
  • First Trust Advisors L.P. ("FTA") is a federally registered investment advisor and serves as the Fund's investment advisor.
  • Prepayment risk is the risk that, upon a prepayment, the actual outstanding debt on which the Fund derives interest income will be reduced.