| NovaStar Cuts Off Credit Lines for Mortgage Bankers (Update2)
April 5 (Bloomberg) -- NovaStar Financial Inc., the subprime home lender whose stock has plunged 80 percent this year, will stop financing independent mortgage bankers. WarehouseUSA Capital Corp., a unit of NovaStar, said on its Web site that as of March 30, it's no longer accepting applications from mortgage bankers for credit lines and that the so-called warehouse lending business will close. New loans under existing agreements are scheduled to end April 27, the notice said. The shutdown won't affect lending by NovaStar itself, said Roswell, Georgia-based WarehouseUSA. Independent mortgage lenders including NovaStar rely on ``warehouse'' credit lines from larger institutions to provide money for loans and keep them in business. Bankers have become reluctant to extend those credit lines after late payments and defaults on subprime mortgages surged to four-year highs in 2006.
Fitch Rates $744MM RALI Mortgage Asset-Backed PT Ctfs, 2007-QS4
NEW YORK--(BUSINESS WIRE)--Fitch rates Residential Accredit Loans, Inc. (RALI) mortgage pass-through certificates, series 2007-QS4, as follows: -- $ 698,387,229 classes I-A-1 through I-A-4, II-A-1 through II-A-5, III-A-1 through III-A-11, IV-A-1 through IV-A-3, V-A-1, V-A-2, I-A-P, I-A-V, II-A-P, II-A-V, III-A-P, III-A-V, V-A-P, V-A-V and R-I, R-II and R-III certificates (senior certificates) 'AAA'; -- $23,904,900 class M-1 'AA'; -- $7,842,900 class M-2 'A'; -- $6,349,000 class M-3 'BBB'. In addition, the following privately offered subordinate certificates are rated by Fitch as follows: -- $4,108,200 class B-1 'BB'; -- $3,361,200 class B-2 'B'. The $ 2,987,828 class B-3 is not rated by Fitch.
Amlak eyes bond sale after bank licence rebuff
Dubai: Mortgage lender Amlak Finance said yesterday the central bank had rejected a request for a banking licence and the company was considering an Islamic bond sale as another way of raising funds. A bank licence would have allowed Amlak, the UAE's largest mortgage lender by market value, to collect deposits, driving down capital costs and letting the company offer cheaper mortgages. The company's stock, which had rallied when the application was announced last year, fell 8.28 per cent yesterday. The shares have tumbled more than 40 per cent this year. Expansion Shahli Akram, Amlak's deputy chief executive, declined to say why the application had been rejected. Amlak would raise funds through Islamic bonds, or sukuk, he said.
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