Hints and tips:
...When I chaired the FDIC during the financial crisis, we sold the failed the mortgage lender Washington Mutual to JPMorgan. It was our only bidder and was prepared to take over WaMu immediately....
...The government created Freddie Mac, Ginnie Mae, mortgage-backed securities, modified mortgages and subsidised rates for homeowners. It was a 1 per cent mortgage era....
...Commercial property, and in particular mortgages on office buildings with low occupancy rates, have been a big concern for lenders since the Fed started lifting interest rates....
...Before the FDIC shut First Republic down in May and sold most of its assets and liabilities to JPMorgan Chase, the bank was suffering from a sharp share price fall, paper losses on its large mortgage book...
...About three-quarters of US homeowners have mortgages charging less than 4 per cent interest, according to JPMorgan Chase research....
...Between mid-2020 and mid-2021, Bank of America added $470bn of mortgage-backed securities and Treasuries, hoping to capture a bit of additional yield....
...JPM is assuming $186bn in FRB assets, mostly in the form of its loan and mortgage book, while taking on $168bn of liabilities....
...sitting on large paper losses on its mortgage book when rates rapidly climbed....
...JPMorgan shares have gained 3 per cent....
...Its funding costs also rose rapidly and it racked up large paper losses on its mortgage book and other long-dated assets....
...First Republic’s business model of using low-cost deposits to fund cheap mortgages has been squeezed by rising interest rates....
...However, banks holding lots of securities backed by mortgages, credit cards and loans for commercial real estate would get hit hard....
...First Republic shares have lost more than 97 per cent of their value this year, driven down by concerns about paper losses on its mortgage book and other assets and massive deposit outflows after the March...
...],” said JPMorgan analyst John Sim in a note to clients....
...Leverage and basketball Phoenix Suns owner Mat Ishbia pledged more than half of mortgage giant UWM Holdings’ outstanding shares to secure loans before buying the NBA team for $4bn, Bloomberg reports....
...AGNC Investment Corp has $51.7bn, The Starwood Property Trust manages $28.3bn, Rithm Capital has $32bn, and the Blackstone Mortgage Trust another $26.8bn....
...JPMorgan, Citi and Wells Fargo report earnings on Friday, followed by Bank of America on April 18....
...The weakest players our screen identified were Wisconsin’s Associated Bank, listed as Associated Banc-Corp, and Valley National of New Jersey....
...On the other hand, might higher mortgage rates support rental demand?...
...The average national savings rate stands at 0.24 per cent, according to the Federal Deposit Insurance Corp....
...JPMorgan Chase has hired Deutsche Bank’s Khaled Fathallah as head of metals and mining for Europe, the Middle East and Africa....
...Other independent lenders, including Sprout Mortgage and First Guaranty Mortgage Corp, have gone out of business....
...SVB launched a $2.25bn share sale after suffering a large loss on its portfolio of US Treasuries and mortgage-backed securities as it grappled with rising rates and a cash crunch at many of the start-ups...
...next year and concerns that much higher mortgage rates would push the UK into an unnecessarily deep downturn....
...News round-up Ex-Jones Day partner told to pay £635k over instruction to ‘burn’ app (FT) Kwasi Kwarteng to meet UK bank chiefs over mortgage market turmoil (FT) Blackstone in talks to buy Emerson Electric...
International Edition