A look at the stories on HousingWire’s weekend desk… with more coverage to come on bigger issues. Bank regulators name the Federal Deposit Insurance Corp. (FDIC) receiver of three failed banks, bringing the running total of bank failures in 2009 to 40. The three receiverships are estimated to cost the FDIC’s deposit insurance fund a combined $363.2m. The North Carolina Office of Commissioner of Banks shuts down Cooperative Bank, putting its $970m of assets and $774m of deposits on the line for sale or dispossession. Troy, N.C.-based First Bank takes on all its non-brokered deposits and $852m of its assets, although Cooperative’s failure is estimated to cost the insurance fund $217m. The Georgia Department of Banking and Finance shuts down Southern Community Bank, putting its $377m of assets and $307m in deposits on the line for sale or dispossession. United Community Bank takes on all its deposits as well as $364m of its assets, although Southern Community’s failure is estimated to cost the insurance fund $114m. The Office of the Comptroller of the Currency shuts down First National Bank of Anthony, putting its $156.9m of assets and $142.5m of deposits on the line for sale or dispossession. Bank of Kansas takes on all its deposits and $130.5m of its assets, although First National’s failure is estimated to cost the FDIC’s insurance fund $32.2m. The US Senate confirms Fannie Mae veteran Herbert Allison Jr. to serve as the Treasury Department’s assistant secretary for financial stability. In this role, Allison will oversee the development of Treasury procedures and policies around financial market stability, namely the Troubled Asset Relief Program. His credentials, according to a Treasury press release, speak to his executive experience in the financial industry:
Most recently, Allison served as President and Chief Executive Officer of Fannie Mae. Prior to being appointed to Fannie Mae, he was Chairman, President and Chief Executive Officer of TIAA-CREF. Allison began his career at Merrill Lynch, where he served many roles and was ultimately elected President, Chief Operating Officer and a member of the Board. He was a director of Time Warner and a member of the Advisory Board of the Yale School of Management, the Advisory Council of the Stanford Graduate School of Business, and the Federal Reserve Bank of New York’s International Advisory Committee. Allison was a director of the New York Stock Exchange from 2003-2005.
Fitch Ratings announces its rescheduled performance update seminar on UK commercial mortgage-backed securities (CMBS), now to be held Tuesday, June 23, nearly two weeks after its previous scheduled date of June 11. A rough commercial mortgage environment in the UK marks the main reason for the seminar, according to a company statement:
Against the backdrop of rapid declines in commercial property values in the UK, Fitch has recently completed a review of all its UK CMBS ratings, resulting in a number of rating actions. The seminar will discuss the results of this review, highlighting the transactions most adversely affected by the market conditions and why. The current property market conditions, including a focus on the importance of the timing of loan maturity and the market capacity to refinance loans when required will also be discussed. Meanwhile, the role of servicers is under increasing scrutiny as workouts become more complex and protracted in the face of extremely challenging market conditions. The briefing will look at the options available to servicers through this phase of the market and discuss the overall outlook for UK CMBS.
Moody’s Investors Servicesays performances of RMBS markets in Korea, Hong Kong and Taiwan are mixed in the wake of the global economic downturn and financial crisis. Marie Lam, a Moody’s senior credit officer, author of pertaining research and based in Hong Kong remarks:
“With mortgage loans in Korean RMBS, there were signs of deterioration, but delinquency levels are very low.” “In April 2009, the highest over 60 days delinquency — as a percentage of the outstanding pool balance — was 0.84% and for the market, it was 0.41%, due to the relatively low initial LTV ratio for Korean bank-originated mortgage loans which is around 60%.” “In Hong Kong, the performance of the mortgage loans in RMBS has not been affected by the current financial crisis at all. They were originated before 2005 and have accumulated sufficient equity.” “However, the ratings of the notes guaranteed by the Hong Kong Mortgage Corporation Limited (“HKMC”) are now on review for possible downgrade following Moody’s announcement that HKMC’s Aaa long-term local currency issuer rating has been placed on review for possible downgrade.” “The two cross-border RMBS from Taiwan performed very differently because of their different LTV ratios. The over 60 days delinquency — as a percentage of the outstanding pool balance — in Hsinchu International Mortgage Loan 2 Limited (i.e. the higher LTV deal) was almost three times as much as that in Hsinchu International Mortgage Loan 1 Limited (i.e. the lower LTV deal).” “However, Moody’s does not expect any rating action on Hsinchu International Mortgage Loan 2 Limited as its sequential pay structure allowed it to enjoy more than 40% credit enhancement at end-April 2009, and there should be sufficient protection for the rated notes.”
Write to Diana Golobay.
