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Inside Nonconforming Markets

July 7, 2006

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As Release of New HMDA Data Nears, the Focus is Still on 2004

The release of new Home Mortgage Disclosure Act data is just two months away. But federal regulators are still trying to figure out what to make of 2004’s data, which unearthed apparently widespread price disparities among racial and income groups. That was made clear by a series of letters, released late last month by the House Financial Services Subcommittee on Financial Institutions and Consumer Credit, which detail the responses of federal regulators to the 2004… Read More

FDIC Vows More Punch in Efforts to Rein in Abuse

Banks and thrifts subject to supervision by the Federal Deposit Insurance Corp. could face tougher scrutiny of their businesses in the coming months, if the agency follows through with a pledge to revamp its approach to abusive lending. In response to a report issued last month by its Office of the Inspector General, the FDIC said that it will develop an “overall supervisory approach” to predatory lending through a process that will include a… Read More

Study Highlights ‘Subtle’ Discrimination, Group Says

Some minority loan seekers in one of the nation’s largest cities – Boston – may be getting a raw deal from lenders, particularly if they have credit problems. That was one of the key findings from a report issued recently by the Fair Housing Center of Greater Boston, which detailed the results of “matched-pair” tests conducted in the Boston metropolitan area between October of 2005 and January 1 of this year. … Read More

Subprime Servicers See Solid Portfolio Growth in Early ‘06

The subprime market appears headed for another solid year on the origination front in 2006. But a significant amount of production is leaking away as servicers have had to work hard to keep loans on the books and grow their portfolios, a new analysis by Inside B&C Lending suggests. … [One data table included] Read More

Argent Latest Subprime Player to Tap Alt A Market

Argent Mortgage has set its sights on the Alt A sector, where it plans to use its considerable marketing clout to quickly ramp up market share. “We believe we are going to capture market share very quickly,” said Sam Marzouk, president of Argent, outlining the company’s plans for its Alt A program. … Read More

Consolidation Continues With Wachovia Sale of HomEq

Another large subprime servicing platform, HomEq, is changing hands as consolidation continues to reshape the market – and to bring Wall Street closer to borrowers. Wachovia Bank recently announced an agreement to sell HomEq to Barclays Capital for $469 million. Wachovia officials said the move was driven by a strategic decision that the subprime market is no longer a core business line. The North Carolina-based Wachovia is still writing subprime loans through a unit… Read More

S&P Leads Rating Agencies in Subprime Business in 1Q ‘06

Two firms, Standard & Poor’s and Moody’s Investors Service, dominated the market for rating subprime MBS in the early part of 2006, a new Inside B&C Lending analysis reveals. As usual, S&P was the top rating agency when it came to subprime business during the first quarter. The firm rated $121.25 billion in subprime MBS deals, or 98.2 percent of the total $123.48 billion in total issuance. That represents a slight increase from 2005,… [One data table included] Read More

NHEMA Stance on Suitability Still Evolving, Group Says

A trade group representing subprime finance companies is still deciding how it feels about a proposed suitability standard for loan originators. “We have taken no formal position yet on how suitability might be defined or on whether legislation or regulation is needed or appropriate,” said the National Home Equity Mortgage Association in a comment letter filed with the Federal Reserve Board during its recent hearings on the home-equity market. “We have, however, heard initial… Read More

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

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