Wells Fargo: 1) Non performing real estate loans: * Commercial real estate: 3,8% of loan balance (+ 50% qoq) * Residential: 4.4% (+25%) - increase to a large extent due to Pick a pay (53%) and a longer work out period
Pick a pay roll rates are sligtly lower. New delinquencies have declined back to early 2008 levels. (Pick a pay might not be relevant for MBIA, but nevertheless the trend is relevant)
Credit spreads Unrealized securities gains were $5.6 billion consisting of $3.3 billion in unrealized gains in the agency mortgage-backed securities portfolio and $2.3 billion on spread-related fixed-income securities and equity investments
Bank Of America
Residential Mortgages 30 day+ residential mortgage delinquencies: 4% (flat qoq) 30 day+ Home equity delinquencies: 1.47% (+2%) Home equity net charge offs: 4.1% (-20%) (presentatiion page 25)
(the levels of 1.47% and 4.1% seem rather low to me?)
Commercial mortgages (non homebuilder) Losses slightly down Reserves up ca. 15%
What I learned?
MBIA 4q results will show: * positive marks on derivatives portfolio ($1bln?) * No or small extra reserves on residential mortgage book * Maybe reserves on commercial real estate book
And I knew already: * positive tax benefit ($?) * Decline in reserves re credit suisse mortgage portfolio ($400mln?)
And what I don't know: * widening/ tightening of MBIA credit spread over the quarter?
I just realize that I don't understand the increase in the volume of non performing pick a pay mortgages. Later in the presentation Wells states that the roll rates are substantially down. How is this possible?