Tag Archives: Credit Ratings

New commentary from DBRS Morningstar highlights how the company looks at banks’ management of climate-related risks—in particular, from a credit perspective.

With low housing inventory and rising home prices, which city had most homebuyers putting more money down, have high credit scores, and start loan shopping before home shopping? Spoiler Alert: California cities take the top spots.

The Department of Justice sued S&P in February 2013, alleging that the credit ratings agency "knowingly and with the intent to defraud, devised, participated in, and executed a scheme to defraud investors" in collateralized debt obligations and residential mortgage-backed securities between 2004 and 2007.

The percentage of banks reporting stronger demand for mortgage loans rose in the second quarter, the Federal Reserve reported, with more banks easing lending standards.

The Justice Department (DoJ) and Standard & Poor's (S&P) are at odds with other over civil fraud charges stemming from an alleged scheme to defraud investors in the lead-up to 2008's financial meltdown. The DoJ filed a civil lawsuit against S&P and its parent company, McGraw-Hill, Monday, alleging that S&P "knowingly [issued] inflated credit ratings" for collateralized debt obligations in the years before the crash, misrepresenting their creditworthiness and understating their risks.

With revenue up and the housing market showing a sustained recovery, Fitch Ratings says the outlook for the U.S. title insurance industry is "stable." The agency points to improved revenue and reduced expenses as signs of stability. Operating profit margins for Fitch's title universe rose to 10.3 percent in the first nine months of 2012, a dramatic jump from 6.1 percent during the same period in 2011. In addition, title revenues increased by more than 15 percent from January to September as housing markets found solid ground.

A survey released by the Federal Reserve shows slight easing of standards and strengthened demand for home loans.

Ocwen made some waves when it announced an agreement to acquire Homeward Residential Holdings in a nearly $750 million deal, but Fitch Ratings is doubtful about the move. The ratings agency announced it has placed Ocwen's "B" long-term Issuer Default Rating (IDR) on Rating Watch Negative following the financial corporation's announcement.

Another major bank took a hit as the National Credit Union Administration (NCUA) filed a lawsuit against Credit Suisse Securities.

Adverse selection is leading to rating downgrades for ├â┬ó├óÔÇÜ┬¼├àÔÇ£one of the strongest U.S. residential mortgage vintages,├â┬ó├óÔÇÜ┬¼├é┬Ø the pre-2005 vintage, according to Fitch Ratings. Residential mortgage-backed securities formed before 2005 "have historically performed well," according to Fitch. In fact, more than 93 percent have already been repaid in full, and principal losses account for less than 1 percent of the $650 billion vintage. Fitch has placed several classes from the pre-2005 vintage on "Rating Watch Negative."