Tag Archives: Investment

Real gross domestic product (GDP) grew 0.1 percent in the fourth quarter, the Bureau of Economic Analysis (BEA) reported Thursday. Last month, in the advance GDP release, BEA had reported the nation's economy contracted by 0.1 percent, the first "negative growth" since the end of the Great Recession in mid-2009. Economists had expected the turnaround, but to a stronger 0.5 percent growth rate. BEA said the revision is based on more complete data than were available for the "advance" estimate issued last month.

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

The number of homes purchased with cash in California reached an all-time high in 2012 as the mortgage environment kept other interested buyers out, according to DataQuick, a real estate information service. The company's data shows a total of 145,797 condos and houses were bought without mortgage financing in 2012, up from 125,812 in 2011 (the previous high) and 39,731 in 2007. According to DataQuick's John Walsh, the increase comes from high investor interest and a currently difficult mortgage environment.

Younger generations continue to hold a more favorable view of homeownership than their elders, according to Prudential Real Estate's end-of-year Outlook Survey. The report shows homeownership remains important to 96 percent of Americans, with 77 percent of respondents ages 25-34 and 78 percent ages 35-44 agreeing it is "very important." Those percentages fall off somewhat for older generations: 73 percent for the 45-54 crowd and 72 percent for those ages 55-64.

Personal income jumped a staggering 2.6 percent in December, almost four times the 0.7 increase economists forecast, the Bureau of Economic Analysis reported Thursday. Part of the December increase, BEA said, was due to "accelerated bonus payments and other irregular pay in private wages in anticipation of changes in individual income tax rates." Personal consumption spending rose 0.2 percent, slightly below the expected 0.3 percent increase. The increase in personal spending--$22.6 billion --came primarily in spending on services.

Conditions in the housing sector may have finally improved enough to bring life back to the securitization market.

Vertical Capital income Fund (VCAPX), a fund that invests in mortgages and deeds of trust, outperformed its benchmark in its first fiscal year, according to a release from Irvine, California-based Vertical Capital Markets Group.

After announcing Monday the sale of nearly $306 billion in mortgage servicing rights (MSRs) on 2 million loans, Bank of America might be looking to unload a little more. Reuters first reported Tuesday that the bank is planning to sell rights on at least another $100 billion of mortgages. BofA is likely to announce more MSR sales in the next several weeks, according to two unnamed sources who spoke to Reuters. Sales of servicing rights have become more prevalent as costs rise and servicers fall to bankruptcy, leaving hungry institutions to purchase their MSRs.

The ongoing housing recovery will remain sustainable for the foreseeable future, analysts for Capital Economics say.

American International Group (AIG) is making plans to move away from its savings and loan business and toward mortgage investment, CEO Bob Benmosche revealed in an interview with Reuters. The company's mortgage insurance subsidiary, United Guaranty Corporation (UGC), has seen steady growth after adopting a risk-based pricing strategy. However, Benmosche said AIG is interested in moving beyond mortgage insurance and is looking at ways to get involved more directly.