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Inside Nonconforming Markets

February 16, 2007

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Regulators May Leave Nontrad Guidance Alone

Key lawmakers in the Senate are pressing federal regulators to expand their recently released guidance on nontraditional mortgages, but the agencies appear to be leaning toward a different approach to dealing with hybrid ARM lending in the subprime market... Read More

Fannie Mae Clarifies Interest-Only Changes

Fannie Mae recently clarified that its new underwriting policies for interest-only loans will not apply to loans delivered under existing agreements that include negotiated terms for such loans. According to Announcement 07-02, issued Jan. 30, Fannie “may in the future... Read More

Alt A MBS Issuers Show Considerable Variation

Issuers of Alternative A mortgage-backed securities are as diverse as the growing range of products that make up the alternative mortgage space, a new analysis by Inside Alternative Mortgages reveals. Some Alt A MBS issuers focused... [Includes one chart] Read More

Option One Turns to Alternative Products

Option One Mortgage is tightening its underwriting guidelines and expanding into alternative products in an effort to maintain volume while escaping the problems plaguing the subprime market. The lender is also considering qualifying borrowers for... Read More

Agencies Implement Neg Am Reporting Change

Banks and thrifts with any significant amount of negative amortization mortgage loans on their books will soon have to begin filing detailed reports on these assets with federal regulators. Four federal banking regulators this week jointly... Read More

Ginnie Reverse Mortgage MBS Due by September

Ginnie Mae is continuing to work on a securitization structure for the FHA’s Home-Equity Conversion Mortgages, and a solution is imminent. Ginnie President Rob Couch said the first HECM securitization should occur by September. Speaking at the American Securitization... Read More

ComplianceAnalyzer to Include Alt Products

A newly revamped ComplianceAnalyzer will be able to handle more nontraditional, option ARM, and interest-only products, ComplianceEase Solutions announced recently. The Web-accessible program is used to check for compliance with consumer protection and... Read More

Wachovia and Golden West: A Good Match So Far

Wachovia Corp.’s success with its recent purchase of Golden West Financial is an anomaly at a time when many foresee the ARM market continuing its decline. Golden West has long relied on its ARM sales to drive growth, and option ARMs accounted for 91 percent of... Read More

IndyMac Diversifying, Purchases NYMC

Major Alt A lender IndyMac Bancorp of California has entered an agreement to purchase New York Mortgage Trust’s wholly owned taxable REIT subsidiary, New York Mortgage Company. NYMT specializes in prime lending but also originates some Alt A and subprime loans... Read More