Moody's Investors Service just announced rating actions on a number of mortgage insurance firms because of continued U.S. mortgage market stress as well as considerable uncertainty regarding the amount of mortgage insurance claims that could happen in the next several years. According to a release from Moody's, the following rating actions have been taken. The 'Aa2' insurance financial strength (IFS) ratings of the mortgage insurance subsidiaries of The PMI Group and the 'Aa3' IFS rating of Triad Guaranty Insurance Corp. were put on review for possible downgrade. The 'Aa2' IFS ratings of the mortgage insurance subsidiaries of Genworth Financial and the 'Aa3' IFS rating of Republic Mortgage Insurance Company were affirmed, although these companies' rating outlooks were changed to negative. The 'Aa2' IFS ratings of the mortgage insurance subsidiaries of United Guaranty Corp., which is a wholly-owned subsidiary of American International Group, were affirmed with a stable outlook, Moody's said. At the same time, Moody's put the 'Prime-1' commercial paper rating of MGIC Investment Corp. on review for possible downgrade, the release said. The 'Aa2' IFS ratings on the main mortgage insurance subsidiaries of MGIC Investment Corp. and the 'Aa3' IFS mortgage subsidiary ratings of Radian Group are still on review for possible downgrade, the rating agency announced.
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Spreads ranging from 16-18 basis points over the three-month, interpolated yield curve on the P1 (Moody's) and F1+ (Fitch) notes, to 160 to 170 over the benchmark on the class D notes.
April 25 -
Mortgage rates rose 7 basis points this week, Freddie Mac said, and more increases are likely following a weaker than expected gross domestic product report.
April 25 -
Broken down by product type, the agency's NJCLASS Standard Fixed product should account for a large majority of the loans, 75.4%. NJCLASS Consolidation will account for the next-largest group, 14.1%.
April 24 -
Congressional Review Act resolutions are ramping up ahead of the 2024 election cycle. Experts say that, although none are likely to become law, the resolutions are still powerful messaging and political tools.
April 24 -
The notes will price against Treasurys, with spreads expected to fall between 85 and 90 basis points over the benchmark.
April 24 -
The JPMorgan Chase CEO took aim Tuesday at the proposed Basel III endgame rules, hindrances to mergers and bureaucratic burdens. "I would love to have a more productive relationship with regulators, but I think it takes conversation," Dimon said.
April 24