"Among the loans in our analysis, which constitute nearly 25% of all outstanding U.K. prime mortgages, approximately 270,000 borrowers are in negative equity," said Alastair Bigley, head of RMBS for U.K. and Ireland at Fitch.
There is a wide variation of exposure to negative equity between the master trust programs. Up to the end of April 2009, using the Nationwide Building Society (NBS) House Price Index, Fitch estimated that Northern Rock's master trust RMBS program Granite, which has highgest proportion of loans (by value) in negative equity at 32%.
However, Fitch said that this increase in isolation is unlikely to result in any negative rating action, since a 30% peak to trough house price decline is already factored into current Fitch RMBS ratings.
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According to the Federal Reserve Board's latest financial stability report, persistent inflation and policy uncertainty are the primary worries for banks. Survey respondents expressed heightened anxiety over murky policy outlooks due to geopolitical turmoil and rapidly approaching domestic elections.
6h ago -
With a high proportion of fixed-rate, interest-only underlying loans, the notes have almost no amortization, and three CRE loans have standalone, investment-grade opinions.
10h ago -
The fixed-rate loans are divided into three sub-pools that relied on rating methods from the RMBS, CMBS and ABS sectors to assess their risks.
April 18 -
The House Financial Services Committee also sent to the full House two bipartisan bills, including one that would prevent large banks from opting out of having to recognize Accumulated Other Comprehensive Income in regulatory capital.
April 18 -
The portfolio does not have any meaningful originations that have completed a full repayment cycle, making the company's performance data thin.
April 18 -
Formerly of Wells Fargo, she will coordinate several key units to create a structure for a sustained capital markets program that capitalizes on recent innovation and growth in home equity finance.
April 17