TheMReport — News and strategies for the evolving mortgage marketplace.
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Local Edition SECONDARY MARKET of those affected by Hurricane Sandy may not return to normal for some time, one research report suggests the storm's impact on non-agency residential mortgage-backed securities (RMBS) affected ZIP codes, the ultimate exposure is much lower than originally estimated," said Bill Hunt, head of research at Opera Solutions, regarding Sandy's impact. While Opera Solutions expects the overall impact on the RMBS market to be smaller than previously anticipated, the study did find some bonds that could experience losses as high as 500 basis points. LRES Highlights Annual Achievements Touting significant revenue increases and employment growth, the West Coast-based company revealed results from 2012. California // Last year was delinquencies for about two years. However, prepayments also spiked at the time due to insurance payouts and government disaster relief. It is also notable that the increase in foreclosures after Hurricane Katrina was concurrent with the start of the foreclosure crisis, and it is difficult to determine the level of impact of each cause. Regardless, "[b]ased on a detailed analysis of each portion of The M Report | 79 se c on da r y m a r k e t may be much less substantial than originally anticipated. With some estimates as high as $88 billion, Opera Solutions, a New York-based company that specializes in machine learning, released its own estimate based on neighborhood-level data. The firm suggests the damage will be closer to $6 billion. "For most bonds in the nonagency universe, the impact will be negligible as insurance and government assistance programs good to California's LRES, a national provider of commercial and residential valuations and asset management. According to a release, 2012 saw the company's revenue grow by 35 percent. LRES is also poised to extend its annual growth by 20 percent this year through property management expansion, the company announced. That's not all—LRES' staff has grown beyond 100 associates in three states, and the firm added a new chief investment officer and hired three senior directors in operations, sales, and technology; a new commercial sales director has also recently joined the company's staff. "In 2012, LRES was able to achieve record growth due to the stability and integrity of its qualified management team and its competitive business practices," said LRES CEO Roger Beane. "We look forward to growing our business units and continuing to offer end-to-end customized solutions and managed business processes that limit loss severity and maximize return on investment for our clients in the loan origination and default housing markets." A na ly t ic s A new report from Opera Solutions indicates that New York // While the lives will mitigate much of the potential losses," Opera Solutions stated. To predict the future impact of Hurricane Sandy on RMBS, Opera Solutions compared the physical damage to that of Hurricane Katrina, which severely damaged the Louisiana coast in 2005. Both storms resulted in significant flood damage. After Hurricane Katrina, the impacted areas experienced heightened levels of s e r v ic i ng Bond Exposure to Sandy Less Severe than Expected the storm's effect on non-agency residential mortgage-backed securities may be less damaging than predicted. Or ig i nat ion community from introducing reforms at the start of 2013. The Basel Committee on Banking Supervision met December 13–14 to discuss the progress of member nations in implementing the new capital adequacy requirements in Basel III. While a handful of jurisdictions— including the European Union, Korea, Russia, and the United States—are only in the draft stage, the majority of jurisdictions published the final set of rules, which took effect January 1. Turkey was expected to draft regulations early this year. The new accord requires banks to raise their capital reserves to better "absorb shocks arising from financial and economic stress, whatever the source," according to the Bank for International Settlements' website. Basel III also includes the implementation of other rules designed to strengthen the industry's regulatory framework. The globally agreed timeline includes several milestones to be reached between 2013 and 2019. While certain members may be getting more time to create finalized rules, that doesn't mean the entire implementation timeline will be shifted. "It is expected that as remaining jurisdictions finalize their domestic regulations during 2013, they will incorporate all the remaining transitional deadlines in line with the original global agreement, even where they have not been able to meet the 1 January 2013 start date," said Stefan Ingves, chairman of the Basel Committee and governor of Sveriges Riksbank. "Hence, by the end of 2013, almost all Basel Committee jurisdictions will be implementing Basel III in accordance with the agreed timetable."