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Inside Nonconforming Markets

October 20, 2006

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ARMs Dominate Alt A Securitization Mix in 2006

Rising interest rates haven’t fueled a wide-scale shift to fixed-rate mortgages in Alt A lending, at least in the mortgage-backed securities market, where lenders in 2006 securitized more than two ARMs for every fixed-rate loan. According...[Includes 2 charts and 1 graph] Read More

Most Borrowers Fine with Alt Loans, Poll Finds

Most mortgage borrowers would take advantage of nontraditional loan features if they understood better how they worked, a new survey suggests. The poll, conducted in June by Opinion Research International, was sponsored by jumbo ARM lender Thornburg Mortgage. The survey asked... Read More

New ‘Ratchet Mortgage’ Automates Fixed Refis

Taking direct aim at the U.S. housing market’s ups and downs, financial gurus Bert Ely and Andrew Kalotay recently introduced a new “Ratchet Mortgage” product, essentially a one-way adjustable rate mortgage that can only index downwards, automating the refinancing of... Read More

Accredited Finds Early Success in Alt A Venture

Accredited Home Lenders is banking on technology as it pushes further into the alternative mortgage market with an aggressive focus on Alt A lending. “We’re just now putting real energy into the sales side of this,” said Joseph Lydon, Accredited COO, of the Alt A push, during remarks at... Read More

MILA Adopts Alt Focus, Drifts From Subprime

A Washington-based wholesale lender is moving away from its subprime mortgage roots to focus on business up the credit scale, in the Alt A and conforming market. Officials at MILA say the shift – which has reduced the amount of subprime volume produced by the company from... Read More

Regulators Offer Consumer Info on Nontrad Loans

Federal bank and thrift regulators have published a new booklet designed to help consumers understand the complexities of interest-only mortgage and option ARMs and to shop more effectively for a loan. The 17-page booklet, “Interest-Only Mortgage Payments and... Read More

CUMAnet Gains From Tweak of Hybrid ARM

The Credit Union Mortgage Alliance Network has put a twist on the standard one-year adjustable-rate hybrid ARM. A credit union-owned originator and service provider, CUMAnet offers off-the-shelf products that its alliance members can offer to their customers... Read More

Longer Loans More Likely to Default, S&P Finds

Loans with terms over 40 years don’t provide borrows with much bang for their buck while posing a significantly higher risk of default, rating agency Standard & Poor’s has warned. According to S&P, more than $41 billion of 40+-year loans were securitized during... Read More

Ginnie Securitization Could Boost Reverse Loans

Originators of federally-insured reverse mortgage products will have a new outlet for their loans, securitization through Ginnie Mae. Ginnie Mae announced the launch of its Home Equity Conversion Mortgage securitization program this week, in a move that officials say will boost... Read More