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LOCAL EDITION SECONDARY MARKET from its desire for revenue," she said in a statement. "Yet privately, S&P abandoned its principles and instead used every trick possible to give deals high ratings in order to retain clients and generate revenue," she added. "The mortgage-backed securities that helped our market soar—and ultimately crash— could not have been purchased by most investors without S&P's seal of approval." Madigan cited numerous emails by S&P employees, one of whom said that investments "could be structured by cows and we would rate it." S&P's ratings decisions continue to exert influence in the financial world. The ratings agency recently slashed credit ratings for nine eurozone countries, including France, Italy, and Spain, leading to a massive selloff on Wall Street and substantively lower stocks and shares for big lenders. Economic Group Partners with Bank for Study BMO AND HARRIS PRIVATE BANK TEAM UP FOR A SURVEY ON BORROWER BEHAVIOR AND ECONOMIC FACTORS. MONTREAL AND TORONTO, CANADA // The uptick in existing-home sales that ended 2011 is, obviously, a positive industry trend, and a new study released by BMO Economics and Harris Private Bank indicates that the sales pace is likely to continue upward, based on data that show increasing numbers of potential buyers are moving into the marketplace. Introducing the findings within the collaborative study, Doug Porter, deputy chief economist for BMO Economics, said, "December's gain was the third rise in a row and is the highest number of sales since January of last year. It is now up 40 percent from the lows hit in July 2010." According to estimates from the report, sales during 2011 climbed a total of 2.5 percent, landing at 4.29 million units to end the year. The rise in sales is believed to "erase" the 3.4 percent drop shown during 2010. Single-family home sales reached an 18-month high in December, and additionally, statistics showed that the tally of condos sold hit an eight- month high. The accumulation of existing homes felt some year-end relief as well, with record low mortgage rates, near record high affordability, a more promising economic recovery, job creation, and low prices are beckoning homebuyers out of the woodwork." Harris Private Bank's chief investment officer, Jack Ablin, also weighed in on the results of the study, saying, "While some buyers may believe that better deals will be available for those that wait, stable prices and housing prices appearing to be stabilizing, more consumers have been contacting our branches and mortgage loan officers to determine which of our various mortgage loan products best meet their financial and homeownership goal." First Niagara Moves Forward with HSBC Acquisition SELLING LARGE NUMBERS OF COMPANY BRANCHES, FIRST NIAGARA CONTINUES TO PREPARE FOR ITS PURCHASE OF HSBC'S REGIONAL RETAIL BUSINESS. NEW YORK // Continuing its selloff, First Niagara Bank has announced its intention to liqui- date another 27 branches. The move is part of the company's transition following its acquisition of HSBC Bank's regional retail business in New York and Connecticut. Earlier this year, First Niagara, which is based in Buffalo, New York, sold 37 of its locations. The company's aggressive sales strategy will facilitate the bank's plans to purchase 195 HSBC Bank branches in a deal that is reported to carry a price tag of around $1 billion. First Niagara's most recent sale included Community Bank System, which bought 19 of the branches, and Financial Institutions subsidiary, Five Star Bank, which purchased the remaining eight branches. The locations sold by First the inventory of single-family units declining by 10 percent in December. The share of first-time buyers, however, is flagging, and only 31 percent of those purchasing homes in December 2011 were making their initial entry into the housing market. Numbers of repeat purchasers rose to 48 percent of the total market share. Porter continued his commentary on the survey, noting, "The combined effects of increased activity will go a long way to instill some urgency into buyers' psyche." The financial institution's senior vice president of retail lending, Randy Raup, extended his thoughts on the findings, stating, "We are seeing some very encouraging signs in the housing sector and rising consumer confidence, all of which is helping to drive this positive trend. With interest rates at historic lows and Niagara were primarily those in upstate New York. The branches are estimated to have been worth a combined total of $1.4 billion in deposits and another $315 million in loans. The bank announced its maneuver to buy HSBC Bank's regional retail network last year, and First Niagara released a company statement that noted its plans to sell off around half of the branches. First Niagara's transaction resulted in KeyCorp's purchase of all 37 branches offered for sale. THE M REPORT | 79 ORIGINATION SERVICING ANALYTICS SECONDARY MARKET