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Inside Nonconforming Markets

June 9, 2006

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Brokers Still the Main Engine for Origination of Subprime Loans

Mortgage brokers were the primary source of new loans for subprime lenders in the first quarter of 2006, a new Inside B&C Lending analysis reveals. During the first three months of this year, brokers accounted for a whopping 61 percent of subprime originations – the highest level ever for that channel. In 2005, brokers accounted for 59.3 percent of subprime business. Overall, brokers have grown their market share by almost 20 percent since 2002,… Read More

Retail Shakeout Leaves HSBC On Top in Early Part of 2006

The retail sector saw a new king emerge in the early part of the year, as restructuring and an industry shakeout took its toll on the sector. How bad has the ride for retailers been? An analysis by Inside B&C Lending found that the volume of loans generated via retail channels dropped by a precarious 37.4 percent, to $30.90 billion, on a year-to-year basis, during the first quarter of 2006. Meanwhile, wholesale lending volume jumped… [One data table included] Read More

Trend Toward Lower Credit Concerns MBS Investors

The subprime market’s gradual slide down the credit spectrum in the pursuit of bolstering production volume worries mortgage-backed securities investors gathered at this week’s American Securitization Forum annual meeting in New York. “Originators had to feed the beast and that opened up credit to people who 10 years ago could not get a mortgage,” said Daniel Castro, partner and managing director at investment firm GSC Partners. … Read More

Studies Offer Conflicting Views of HMDA Data

Recent efforts to dig into subprime mortgage records collected under the Home Mortgage Disclosure Act have come to starkly different conclusions about what the data mean. While a new analysis by a community advocacy group concludes that certain minority borrowers are much more likely to end up with higher-priced loans than whites with the same credit profile, a study by a mortgage industry law firm found no racial or ethnic bias in the jump… Read More

Accredited Sees Profit Poten-tial in Canada, Alt A

Accredited Home Lenders has grabbed headlines recently with its proposed acquisition of Aames Investment Corp – a move that officials say will triple the size of Accredited’s retail platform while expanding its wholesale broker network. But the San Diego-based firm has quietly been growing its business in other ways. … Read More

Renters Less Adept with Credit, MBA Study Finds

Renters are less confident than homebuyers when it comes to credit issues, a new survey by the Mortgage Bankers Association reveals. The trade group poll of more than 1,200 people pointed to a surprisingly high level of credit awareness among consumers in general – with more than 81 percent of homeowners and 65 percent of renters characterizing themselves as “extremely good” financial managers. And, significantly for nonprime lenders, respondents also overwhelmingly reported benefits from debt… Read More

B&C News Briefs

Æ First Franklin has launched a 50-year mortgage product. “For borrowers who are looking for a stable, conservative and affordable home loan, our new 50-year product delivers low monthly payments with the ability to pay down principal from the start,” said the National City subsidiary on its Web site. … Read More

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