Hints and tips:
...The remainder of the book is a smattering of pieces including $1.2bn of loans to wineries, $10.5bn of loans to clients of its private bank — predominantly mortgages and home equity lines of credit — and...
...Basically, I defined what was wrong with mortgage markets. These “modified mortgages” entailed you buying the home, borrowing the money and paying 1 per cent on the mortgage for three years....
...However, funding has also come from private lenders and the commercial mortgage-backed securities sector, often bundled into collateralised loan obligations....
...Worries have persisted as banks disclose exposure to losses on commercial real estate loans as work from home leaves offices underused....
...In April 2021, SoftBank was so eager to back US mortgage lender Better Home & Finance that it wrote a $500mn cheque and was prepared to hand its newly acquired voting rights to Vishal Garg, the start-up’...
...But loan volumes dropped to $11.4bn last year as the Federal Reserve aggressively lifted rates to fight inflation, damping demand from would-be homebuyers and owners seeking to refinance....
...Professional investors will look at everything and weigh credit versus government bonds and agency mortgages versus high yield and emerging markets....
...Most home loans are paid off far earlier than their 30-year term, and if interest rates were to fall again, then BofA’s bond holdings would regain value....
...The narrative is quite different across the Atlantic where big housebuilders have enjoyed large share price gains thanks to the rebound in the new homes market, despite the rise in mortgage rates....
...It’s not going to be debt holders, which are the Fed and the Federal Home Loan Bank of San Francisco. They are secured creditors who hold collateral against their loans....
...With the assumption of $110bn of assets from failed SVB, including about $70bn in loans and $40bn in cash, the size of First Citizens’ balance sheet will more than double to $219bn....
...Average US mortgage rates have topped 6 per cent for the first time since the 2008 financial crisis, showing how the Federal Reserve’s aggressive policy of monetary tightening is ratcheting up the cost of...
...As a corrective to some of the gloom surrounding prospects for the global economy, economics editor Chris Giles offers some reasons to be cheerful....
...Loans from the Federal Home Loan Bank system, regarded as the lender of second-to-last resort, charges similarly elevated market rates....
...That highlights another possible lifeboat for insurers that find themselves in trouble: The Federal Home Loan Banks, a popular financing option for regional banks under stress, can also lend to many life...
...Sentiment among homebuilders declined for the sixth consecutive month in June, as inflation and higher mortgage rates weakened demand for new homes....
...US mortgage rates fell at the fastest pace since 2008 in the past week, as economic jitters in bond markets feed through to home loans at a time when dwelling costs are at historic highs....
...Other independent lenders, including Sprout Mortgage and First Guaranty Mortgage Corp, have gone out of business....
...Laurie Goodman, a fellow at the Urban Institute, said: “The increase in home prices, combined with higher mortgage rates, has made home ownership less affordable than at any time since the financial crisis...
...I suppose the big question for lots of us sitting here who are lucky enough to own our own homes is what it will do to mortgage rates. Katie Martin I’ve got one year until I renew my mortgage....
...The Federal Housing Finance Agency on Tuesday said the biggest loan for a single-family property in high-cost areas including New York and Los Angeles that can be purchased by government-sponsored home loan...
...(FT, WSJ) US existing home sales are expected to fall for the sixth consecutive month to 4.89mn in July from 5.12mn the previous month, against the backdrop of high mortgage rates and record prices causing...
...In the mortgage industry, the UK’s fondness for short-term deals is also a product of its underlying financing structure: most home loans are funded by deposits, the bulk of which can, in theory at least...
...Sheila Bair, former chair of the US Federal Deposit Insurance Corporation, writes in the FT that the current Federal Reserve leadership should take lessons from its former chair Paul Volcker and his successful...
...News round-up Kanye West to buy ‘free speech’ app Parler (FT) Rupert Murdoch proposes merging Fox and News Corp (FT + Lex) Credit Suisse reaches $495mn mortgage settlement with US prosecutors (FT) Bain...
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