The International Finance Corp. (IFC) is reportedly participating in a securitization for Brazilian bank Unibanco via Nomura Securities (see p. 24).
UCC Capital Corp. recently hired Carl Douglas to lead the firm into technology-related sectors, particularly in the pharmaceutical, biopharma and telecom arenas. UCC is currently in the market with a franchise deal and hopes to close an apparel company deal by the end of the year.
Capital One Financial announced that its 3Q03 earnings were $276 million, or $1.17 per share. Its managed loan portfolio grew $6.5 billion to $67.3 billion and its managed charge-off rate declined to 5.44%, from 6.32% in the second quarter. "Our loan growth was broadly based across products and geographies, and was largely fueled by growth in superprime assets," said Richard Fairbank, Capital One's chairman and chief executive officer. "We are also pleased by our continued strong credit performance."
CNH Capital, a unit of CNH Corp., announced last week that its net income totalled $24 million, up from $12 million over the same period the previous year. The total managed portfolio increased 7% from the 3Q02 and delinquencies declined an undisclosed percentage on a year-over-year basis.
AmeriCredit Corp. announced net income of $33 million for its quarter ending Sept. 30. Chargeoffs were at 7.6% for the quarter, versus 7.4% for the previous quarter. Additionally, AmeriCredit's originations totalled $745.1 million, under the $750 million origination limit the company set for itself at the outset of last year's reorganization. Managed receivables totalled $13.9 billion.
According to market talk, WestLB restructured its debt products business following the August shake-up at the bank resulting from the Boxclever securitization fiasco last August that caused a substantial loss for the group. It has now come back with an integrated team that joins the loan and bond origination business into a debt capital markets group, co-headed by Werner Taiber and Ian Claisse. Sales, trading, structured debt products, private placement and high-yield bonds will also fall under the scope of the newly united group.
In a bid to stay competitive, Freddie Mac has been cutting the fees it charges to guarantee loans it buys from mortgage lenders. COO Paul Peterson, speaking at a luncheon at the Mortgage Bankers Association (MBA) conference held last week in San Diego, said the move would lower costs for homebuyers.
Mortgage insurer Triad Guaranty Insurance Corp. recently promoted Becky Moore to the position of vice president, customer administration. Moore is responsible for all contract underwriting support, contract services and customer service functions. She continues reporting to Shirley Gaddy, senior vice president of operations. Moore has been with Triad since 1996.
Last week, Providian Financial Corp. announced that it agreed to sell to LendingTree.com, certain assets associated with its Web-based financial services marketplace, GetSmart.com. The sale was for an undisclosed sum. Providian has owned GetSmart.com since 1999. The transaction is expected to close in December.
October Agency CMO volume has bounced back from modest levels in September, said a Bear Stearns report released last Thursday. Last week, Freddie Mac reported $30.4 billion in deals due to settle in October. With Fannie Mae yet to report at the time the Bear report was published, analysts said the October tally should easily beat last month's figure of $32.4 billion. The Freddie transactions mostly use 30-year 5.0% and 5.5% passthroughs as collateral. September CMOs took in their smallest share of the passthrough market in over two years. This trend seems set to reverse, said Bear.
The Mortgage Bankers Association of America (MBA) has adopted a new name: the Mortgage Bankers Association (MBA). This was announced at the MBA's 90th annual Convention and Expo. Aside from the new name, MBA unveiled a new logo and tagline - Investing in communities.
With XL Capital's third quarter results likely to fall short of expectations, the company has attributed the shortfall to the higher-than-anticipated losses in its North American reinsurance business. The business is incurring a flood of casualty claims for the 1997 to 2000 underwriting years. Because of this, XL's third quarter net income will be reduced by roughly $184 million pretax (equivalent to $160 million aftertax). The company suggested that further reserve adjustments might be forthcoming. Though XL might be able to absorb the losses, it is unclear how this would affect the company's credit ratings going forward.
Fairbanks Capital Corp. reached a tentative settlement with regulators, according to a report by American Banker, a sister publication of Asset Securitization Report. Under the $40 million settlement, Fairbanks is required to change alleged predatory practices, according to the PMI Group Inc. PMI is a majority shareholder of the Salt Lake City-based subprime servicer. The said settlement must be approved by the Federal Trade Commission, the Department of Housing and Urban Development and the courts.
The Chicago Federal Home Loan Bank said last week that its third quarter dividend will be paid to its member financial institutions in stock at a 7% annualized rate, which is an increase from the 6.5% rate for the first and second quarters of this year. The FHLB also released its third quarter financial results, reporting year-to-date earnings of $282.7 million. The bank's earnings rose by 76% compared to the same period last year. This is in direct contrast to the New York FHLB, which had to suspend dividend payments due to losses incurred on the manufactured housing bonds it owned.
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