Mortgages

Three percent of all mortgages were 30 or more days past due on their scheduled payment or in foreclosure in July.

While the agency affirmed the bank's current high ratings, it also cited instances of noncompliance, which led to the downgrade.

The month ended with 54,000 less properties for which the borrower was at least 30 days or more late on their payments, Black Knight said.

On the other hand, the economists from the UCLA Anderson Forecast claim the U.S. is not currently in a recession and that the chance of a recession in the next 12 months is less than 50%.

This year's rapid rise in mortgage rates is cooling the U.S. housing market, leading to sales declines and pressure on home prices. Other measures put the figures above 6%.

The Cincinnati bank's new division will lend to nonbanks that make or bundle together residential mortgage loans, whose businesses have slowed as higher interest rates lower appetite for refinancing. The warehouse sector has seen "fierce competition" among banks lately, one analyst wrote.

Payment suspensions on loans securitized through the government-backed market stopped falling in May, plateaued over the summer, and reversed course last month, according to an industry trade association.

SPS will have roughly 1.4 million mortgages in its portfolio after the transaction closes, something the two companies estimate will occur in the fourth quarter of this year.

The class-action lawsuit was brought on behalf of mortgage borrowers who were allegedly placed into forbearance during the early days of the pandemic without their consent.

Both the 30- and 15-year averages are now more than 3 percentage points higher from their levels of one year ago.