Cart

Inside Mortgage Finance

September 8, 2006

View Archived Issues

Nonprime Lending Accounts for a Third of 2006 Mortgage Originations; Home-Equity Rising

Although prime conventional mortgage production – both above and below the conforming loan balance – enjoyed a solid rebound in volume during the second quarter, the nonprime market in 2006 has solidified its one-third share of new production, according to a new market analysis and ranking by Inside Mortgage Finance. An estimated $269 billion of nonprime mortgages were originated during the second quarter of this year, making it the second highest three-month period ever for production of subprime and Alt A home loans... Read More

WaMu Paves Way for Bond Issuers With New Program For European Investors Backed by U.S. Mortgage Loans

Washington Mutual this week launched a new production funding vehicle that will tap European investors as an alternative to Federal Home Loan Bank advances and traditional securitization. WaMu’s new $26 billion covered bond program features debt collateralized by U.S. residential mortgage collateral, according to a presale report by Standard & Poor’s, which gave a preliminary tri-ple-A rating to the bonds. Covered bonds are senior debt obligations that are secured by specific assets... Read More

Botched FHA Late Endorsement Change Could Cost HUD Over $19 Million

The Department of Housing and Urban Development is considering repealing changes it made to the FHA’s late endorsement process after HUD’s Inspector General notified the agency that the hastily researched changes could cost HUD well over $19 million. The IG found that FHA’s risk assumption was flawed and the changes actually increased the likelihood of higher default and claim rates for late-endorsed loans. HUD announced the changes, removing the six-month payment history requirement for... Read More

Lawmakers Continue Stumping for GSE Reform, But Oversight Agencies Develop Contingency Plans

The Bush administration is still pursuing sweeping legislative reform as its first choice to im-prove oversight of Fannie Mae and Freddie Mac, but executive branch agencies are also pushing more modest regulatory changes under existing laws that may remain in effect for some time to come. With Congress back in session this week, not much has changed with the stalled legislation to reform government-sponsored enterprises. House Committee on Financial Services Chairman Michael Oxley, R-GA, and House Democrats... Read More

FHA Loan Limit Hike May Survive in Appropriations But May be of Little Help to FHA Program, Observers Say

As the 109th Congress’ legislative calendar winds down, the prospect of seeing much anticipated legislation reforming the FHA mortgage insurance program is growing dimmer by the day, although less controversial reform proposals might still make it in separate appropriations measures, according to industry observers. With fewer than 20 working days left, the Senate Committee on Banking, Housing and Urban Affairs has yet to act on an FHA reform bill introduced this summer by Sen. Jim Talent, R-MO... Read More

Blurred Market Lines Lead to NHEMA-MBA Merger – But Will it Enhance Subprime Agenda?

Bowing to the realities of a market where the lines between prime and subprime lending have become increasingly blurred, the National Home Equity Mortgage Association has agreed to a merger with the Mortgage Bankers Association. Both trade groups are spinning the merger as a win for the industry. “This partnership is in the industry’s best interest and will allow the MBA to have one, strong voice that speaks on behalf of the entire mortgage lending industry,” said MBA Chairman Regina Lowrie... Read More

Advocates, Industry See Different Causes for Skyrocketing Foreclosures in the Buckeye State

High foreclosure rates in Ohio have caught the attention of the House Financial Services Committee, which recently held a field hearing to investigate the reasons behind a foreclosure rate that is more than twice the national average. But if lawmakers were seeking certainty from their meeting in Cuyahoga County, they likely left disappointed: industry and consumer group representatives who testified at the hearing offered very different explanations for the problem – and urged a different set of solutions to deal with it... Read More

Latest Imf News

More Imf News

Featured Data

More Featured Data

Featured Reports

More Latest Reports

Featured Poll

As homeowner equity continues to build, more and more lenders are launching home equity lending products. Are you thinking of joining this market?

View Results