Tag Archives: Fitch Ratings

According to Fitch Ratings, prime RMBS mortgage pools issued since 2010 had an average conditional prepayment rate (CPR) of about 42 percent, more than twice as fast as the rates of outstanding prime loans securitized in earlier vintages. Generally speaking, Fitch explained high refinance activity tends lead to more "performance volatility" since loans remaining in mortgage pools are usually of poorer quality. However, Fitch is seeing a different trend this time around.

The goal of attracting private capital into the mortgage market is at the center of discussions throughout the industry and the government. Thus far, efforts by the Federal Housing Finance Administration (FHFA) and other federal agencies to provide incentives for the creation of a vibrant private mortgage securitization market have been largely unsuccessful, according to Fitch Ratings. However, the ratings agency does see some promise in a couple of FHFA's goals for this year.

Fannie Mae and Freddie Mac will continue to maintain their dominant role in the housing market, according to a report from Fitch Ratings.

Increased profits at home improvement outlets underscore Fitch Ratings' view that the housing recovery is in its early stages.

Some recent RMBS transactions reviewed by Fitch have strayed away from guidelines designed to create sound assurances about origination and underwriting quality.

Now that the industry has its long-awaited QM definition, Fitch Ratings believes jumbo prime securities are poised to see a jump start.

Fitch Ratings anticipates the CFPB's QM announcement will finally allow banks to assess the costs of re-entering the securitization market.

According to a report from Fitch, home prices have risen at their greatest pace since 2005, but in certain markets, technical factors--including low mortgage rates, tight supply of existing for-sale homes, and weak levels of new home construction--rather than "fundamentals" acted as the driving force behind the price gains over the past few quarters. In order to determine sustainability, Fitch conducted an analysis using its Sustainable Home Price (SHP) model.

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.

Fitch Ratings recognized the strength of Freddie Mac's multifamily business, giving the GSE an initial CMBS special servicer rating of CSS2.