EU officials propose guardrails for insurance SRT boom
Insurers' unfunded significant risk transfers should meet a set of extra solvency criteria to ensure stability if policymakers back the most lenient bank-capital treatment.
Risk management
Lenders using VantageScore: Watch Freddie’s CRO shake-up
The chief risk officer's oversight extends to the modernization of loan pricing and scoring, which the GSEs' oversight agency has been accelerating.
Warsh and Peace: Iran tensions, bond market complicate Fed outlook
Heading into this week's Federal Open Market Committee meeting, the Fed's core indicators are painting a different picture of the economy than real-time measures, injecting more uncertainty into Wednesday's FOMC meeting than usual.
What comes next for the Fed’s regulatory independence?
The Supreme Court may have allowed the central bank to chart its own course on bank oversight for now, but discrepancies between two recent rulings set the stage for challenges.
Fed officials mishandled sensitive information: Watchdog report
The central bank failed to prevent critical economic information from falling into the hands of "foreign adversaries," according to a report from its inspector general.
Banks are again vying for CRE loans as fears subside
Lenders pulled back on commercial real estate loans in 2023, as high interest rates put pressure on property values. They're now returning to the sector, and the renewed competition is prompting a pricing war.
Deutsche Bank, Santander test world bank’s risk transfer engine
The International Finance Corporation, has agreed to insure the credit risk on a $500 million portfolio of trade finance tied predominantly to low-income and conflict-affected countries.
IMF calls Mythos a systemic risk
Three senior officials say attackers will eventually breach bank defenses, and supervisors should plan for it — while U.S. regulators stay nearly silent.
Jumbo loans are creeping into non-QM, HELOC securities
Large loan balances are increasingly common in non-QM and HELOC securitizations, bringing faster prepayments and higher delinquency risks, Bank of America Securities research shows.
Stress test on SRTs could help shed light on risks, BIS says
Use of the instruments … is growing, and was equivalent to around 2% or less of total bank loans in the European Union, US, the UK and Canada at end-2024.
Non QM securitization broke records in 3Q: Morningstar
New private-label bonds collateralized by loans made outside the qualified mortgage definition hit highs for the month, quarter and year, CreditFlow data shows.
Mortgage risks tied to federal furloughs flagged by KBRA
Fannie Mae and Freddie Mac's credit risk-transfers and some older private-label mortgage-backed securities have exposures to the Washington DC area.
Fannie, Freddie’s stress test losses ease from 2024
The tests modeled how Fannie Mae and Freddie Mac would fare after absorbing losses like a total $36.1 billion provision in credit losses in a severe downturn.
Low credit scores in non-QM verge on 10% default rate
Loans with alternative documentation and high combined loan-to-value ratios had more performance concerns, according to a new KBRA study.
Three key factors as banks manage CRE risk in 2025
As the risk of a recession rises, commercial real estate loans remain a major concern for banks and industry participants. One observer asked: "Is '25 the year where sellers start to capitulate, call a loser a loser, and move on?"
FHFA shows extent of potential damage from Helene, Milton
Only 5% of homeowners in designated disaster-assistance areas were required to hold flood insurance, according to the Federal Housing Finance Agency's dashboard.
FDIC cites three Texas banks over risk management, liquidity
The Federal Deposit Insurance Corp. and Texas banking regulators issued consent orders against Industry State Bank, Fayetteville Bank and Citizens State Bank, requiring major overhauls of their management, capital and risk controls.
More homeowners disaster-proofing homes, Freddie Mac finds
Awareness of disaster risk has increased in the public and private sectors, and it appears to be prompting more interest in home improvements in particular.
Why a key metric for the CRE market has gone out of vogue
As the commercial real estate industry sputters along, lenders, investors and analysts are putting less stock in loan-to-value ratios, a longtime bellwether of risk.
M&T is feeling ‘really good’ about CRE loans as rates start to fall
The regional bank has already seen a large reduction in "criticized" loans, and it expects that trend to pick up as lower borrowing costs alleviate the pain in the commercial real estate sector.
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