Fitch Ratings Forecast

I finally got the opportunity to read over the recent Fitch Ratings report on the U.S. Title Industry. Fitch Ratings is an agency that provides independent reports and credit opinions regarding the world's credit markets.

Here's the bad news: The title and mortgage industry are both expected to see further declines in 2008. The MBAA (Mortgage Bankers Association of America) expects to see mortgage originations fall by about 20% in 2008, with housing starts estimated to decline by 15%. Home values are predicted to continue their decline as well.

Here's the good news: Fitch continues to give the title insurance industry a stable rating. Taking into account the cyclical nature of the industry, Fitch believes the industry is well positioned to weather current market conditions. The one exception? First American Corporation and its subsidiaries, downgraded to negative from stable due to poor relative performance.

The full report can be download here.


ADD ON TO POST 12/04/07: Fitch has also released a special report entitled:
The Impact of Poor Underwriting Practices and Fraud in Subprime RMBS Performance.