More Earthquake Assistance. Ginnie Mae said it is reaching out to distressed homeowners in the San Fernando Valley by authorizing issuers of Ginnie Mae pools containing loans on properties damaged by the Jan. 17 earthquake to buy the loans out of the pools for the remaining principal balance of each loan. The loans do not have to be delinquent before they can be repurchased. Ginnie hopes this new authority will assist those whose homes were directly damaged by the earthquake and aftershocks by allowing pool issuers to buy back the loans and either modify them or ensure that they continue to be insured or guaranteed by FHA or VA, thus lessening the chance homeowners will become delinquent, or worse, default and before closed on. Issuers must request written permission to buy such loans out of existing pools, and the request must specify that the loan - or loans - was damaged in the Jan. 17 earthquake or one of its aftershocks. The buyout clause expires Oct. 13.
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The Cleveland-based bank is projecting steady growth in net interest income even as credit losses remain manageable. But Chairman and CEO Chris Gorman also said that he thinks a recession is likely.
April 18 -
The first-quarter increase involved commercial real estate loans, including some problematic multifamily loans and an office credit, but none of the criticized loans were to consumers, officials at the Dallas company say. Further CRE deterioration is anticipated.
April 18 -
The Detroit-based company is exploring ways to make more consumer auto loans without running afoul of stricter capital standards that are expected from the Federal Reserve. Possible approaches include more securitizations and the use of credit risk transfers.
April 18 -
The House Financial Services Committee also sent to the full House two bipartisan bills, including one that would prevent large banks from opting out of having to recognize Accumulated Other Comprehensive Income in regulatory capital.
April 18 -
Charge-offs and nonperforming loans rose at the Georgia bank in the first quarter. But it blamed the problem on one large client and said the matter has been resolved.
April 18 -
Amid healthy first-quarter loan growth and improving credit quality, Discover Financial Services slashed its profits by $800 million to offset remediation costs from a 16-year period when it overcharged certain merchants.
April 18