Tag Archives: Fitch Ratings

Freddie Mac announced its multifamily division has received an initial commercial mortgage-backed securities (CMBS) master servicer rating of CMS2 from Fitch Ratings--the highest initial rating ever assigned by Fitch for a master servicer.

Fitch Ratings stated unabashedly a fear that has been whispered across the industry for the past several months--a looming bubble in some markets.

Though recent reports seem to indicate a hitch in the ongoing housing recovery, Fitch Ratings maintains its expectations of a healthy increase in housing metrics through this year and the next. "As we have noted previously, recovery in the housing market will likely occur in fits and starts and housing absolute numbers are still low relative to past cycles," the company said in its latest analysis. "Expansion should not be expected as a total slope upward, as there are a number of variables that intervene."

As major lenders start releasing their second-quarter earnings reports, Fitch Ratings anticipates future filings will show the impact of higher interest rates on banks' mortgage earnings.

Nationstar Mortgage announced it is revising losses on loans with principal forbearances acquired in 2012 from Aurora Bank FSB and Aurora Loan Services.

In an effort to help investors "evaluate upcoming credit-sensitive securitization proposals from the GSEs," Fitch Ratings completed an analysis of credit performance data in a recent report.

Fitch Ratings noted that while a deficit in workers may not lead to "disastrous national numbers for housing," it may put a damper on the recovery.

In a release, Fitch Ratings maintains its cautious view of recent gains in home prices, suggesting recent news of rising prices and sales volumes "are not moving in sync with key economic indicators that would otherwise support a sustainable price level." One of those key indicators in unemployment, which has fallen in the past several years--partly as a result of fallout in labor force participation, not an improving employment situation, Fitch says.

Prices on U.S. homebuilder bonds are trading at or near their pre-crisis levels, but ratings continue to struggle, according to a new report from Fitch Ratings. While some issuers may be able to regain their pre-crisis ratings, Fitch believes others may have more of an uphill battle as they work to grow their businesses, increase profitability, and improve credit metrics. At the same time, bond issuers will have to demonstrate that they can sustain any improvement in credit metrics and still remain disciplined in their land strategies.

The housing recovery may be fast approaching a wall as well-located finished building lots become scarce, Fitch Ratings says in a recent analysis.