Secondary Market

Hamilton Place Strategies has released findings from its analytics initiative, the Hamilton Financial Index. The company releases its examination of the state of the U.S. financial services industry on a semi-annual basis, and Hamilton conducts the study on behalf of the Partnership for a Secure Financial Future.

Moody├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós Investor Service slashed credit ratings for Wells Fargo Home Mortgage Thursday over concerns about deterioration in the quality of prime and subprime loans. The ratings agency downgraded the servicer from SQ1 to SQ2+. When reviewing residential mortgage servicers, Moody├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós rates SQ1 as strong and SQ5 as weak, with modifiers like pluses and minuses signifying their relative strength and weakness in each category. Moody├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós cited the $25-billion settlement as one reason why, saying that added public pressure over negotiations lengthened foreclosure timelines.

First-time claims for unemployment insurance edged down by 2,000 for the week ended February 25, the Labor Department reported Thursday. Data for the previous week were revised upward, turning a flat report into an increase in initial claims. The revision means claims rose and did not decline during the week used by the Bureau of Labor Statistics in its month survey for the unemployment rate. Continuing claims, reported on a one-week lag, fell 2,000 to 3,402,000 as the numbers for the previous week were also revised upward.

Personal income rose 0.3 percent in January, compared with market expectations for an increase of 0.5 percent. Personal income grew 3.6 percent in the last year. Consumer spending grew 0.2 percent, compared with market expectations for an increase of 0.4 percent.

This week mortgage rates played by the same script seen for the last few months, furthering a season for all-time high affordability while fears for Europe drove investors across the Atlantic. Finance Web site Bankrate.com, mortgage giant Freddie Mac, and real estate Web site Zillow.com delivered a dearth for rates across the board. Bankrate.com likewise offered declines for loans across the board. For its part, Greece remains in the clutch of a debt crisis that drew $172 billion in bailout funds from eurozone finance ministers last week.

Private mortgage insurance companies backed home loans to the tune of $4.9 billion in January, a decline from $6.9 billion last year, as the industry continues to reel from sapped business and credit downgrades. Mortgage Insurance Companies of America found $399 billion in insurance-in-force for member companies Genworth Mortgage Guaranty Insurance Corp., Radian Mortgage Insurance Co., and Republic Mortgage Insurance Co. The trade group said that some 21,904 borrowers made a purchase or loan refinance.

A hearing held by House lawmakers Wednesday with Federal Reserve Chairman Ben Bernanke recast housing and the Dodd-Frank Act as issues critical to the economic recovery. The central banker said that 30 percent of home sales recently consisted of foreclosures and properties in distress, reflecting ongoing trouble for a market underpinned by high home vacancy rates and downward pressure for home prices. The underwriting process, down payments, and pending regulations also took center-stage during the discussion, with House members spotlighting recent servicer consent orders.

Overall economic activity continued to increase at a modest to moderate pace in January and early February, the Federal Reserve said Wednesday in the Beige Book. The report ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô an anecdotal review of conditions in each of the 12 Federal Reserve districts ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô showed economic improvement varying across the country. Residential real estate activity increased modestly in most parts of the country, while home prices declined or held steady in many areas. Reports on banking conditions were generally positive across the country. Demand for residential mortgage loans increased in New York and Richmond.

In Illinois, PrivateBancorp, Inc., has named a new president of personal client services. The financial institution recently appointed Brant Aherns to the leadership role, which marks the launch of a new line of business for PVTB.

The Debt Exchange recently released its commercial loan report for January, and the findings indicate that loan values are continuing to rise steadily, following the trend of the past 12 months. According to data from DebtX, values for commercial real estate loans stood at 79.