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Inside Nonconforming Markets

August 3, 2007

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American Home Mortgage Shuts Down

American Home Mortgage closed down most operations this week, and may be headed for bankruptcy, after margin calls and constriction of its warehouse funding pipeline sent it into a liquidity crisis. The Melville, NY-based real estate investment... [Includes one chart] Read More

Slow Secondary Market Threatens Alt A Lenders

Top Alt A mortgage lender IndyMac saw disappointing results for the second quarter, reporting a 57 percent decline in earnings compared with the same quarter in 2006. The Pasadena, CA-based lender posted net earnings of $44.6 million for the second quarter... Read More

Alt A Issuance Continues to Grow at Modest Pace

Issuance of securities backed by Alt A mortgages continued to grow at a modest pace in the second quarter of 2007, increasing by 4.2 percent from the first quarter of this year. However, some of the top issuers decreased their... [Includes two charts and one graph] Read More

Moody’s Updates Alt A MBS Ratings Methodology

Moody’s Investors Service this week revised its ratings methodology for securities backed by Alt A loans and option adjustable-rate mortgages, announcing that foresees further credit problems for the 2006 vintage of Alt A securities. The ratings service said the... Read More

JP Morgan Chase Simplifies Disclosures

JP Morgan Chase has simplified its disclosures to nonprime borrowers as investor and regulatory scrutiny intensifies, the lender announced this week. The simplified disclosures are among multiple measures announced by Chase Home Lending, the mortgage unit of... Read More

Some Alt A MBS Defaulting at Subprime Pace

With delinquency and default rates that are already setting records for poor performance, the 2006 vintage of certain Alt A mortgage backed securities is looking more and more like subprime MBS, and investor losses on those securities could eventually outpace... Read More

Opteum to Sell Servicing Portfolio

Former Alt A lender Opteum is selling its remaining servicing portfolio, completing its exit from the mortgage origination business. Opteum subsidiary Orchid Island TRS, previously known as Opteum Financial Services, announced late last week it found a... Read More

Nontrad Products Losing Credit and Credibility

With the subprime market hitting new lows almost monthly, and a much predicted Alt A downturn looming, consumers are becoming increasingly wary of mortgage products and advertising, suggests a recent poll conducted by Harris Interactive. The public perception... Read More