Commercial Mortgage Outstandings Rise
Despite a decline in commercial mortgages held in securities, overall outstandings increased.
RMBS Ratings All Bad, CMBS Mixed
Recent negative ratings actions were spread across securitizations backed by second liens, home-equity lines-of-credit, Alternative-A loans and prime mortgages. One servicer boasted of its improved servicer status and another saw its rating downgraded. Commercial mortgage-backed securities saw a mix of ratings actions.
Secondary Solutions
Service providers and secondary lenders are promoting services that help secondary players price, acquire and manage loan portfolios. One firm is targeting potential commercial mortgage assets from a bankrupt firm, while other secondary activity centered around the functioning of the secondary market in the aftermath of Fannie Mae's and Freddie Mac's seizure by their regulator.
The Wholesale Wire
A national wholesaler has cut its construction lending program, but some commercial hard-money programs are still expanding. One new offering promises to help wholesale lenders ensure they fund no loans originated by any unlicensed loan officers.
Commercial Delinquency Remains Low
Overall quarterly delinquency on loans backed by commercial real estate crept higher, though it still remains relatively low. But commercial delinquency at banks was up significantly.
McCain Tied to Failure No. 11
On Friday, the Federal Deposit Insurance Corporation took control of the 11th bank this year. The company suffered recent commercial mortgage losses The son of presidential candidate Sen. John McCain recently resigned from the board of the failed institution.
Biggest Commercial Servicers
The biggest U.S. commercial mortgage servicer saw its portfolio increase more than $25 billion during the past six months.
Alt-A RMBS Pounding Continues
Nearly 2,200 classes from Alternative-A residential mortgage-backed securities issued from 2005 to 2007 were recently downgraded. Transactions backed by junior liens and subprime loans also saw negative activity, though ratings on commercial MBS continued to be mixed.
Fastest Growing Mortgage Companies
A few mortgage-related companies remain among the nation's fastest growing private companies. Commercial mortgage companies and credit repair firms dominated the sector.
