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Inside Nonconforming Markets

October 27, 2006

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Shocker: Subprime MBS Issuance Slides From Last Year’s Record

Maybe the subprime securtization market isn’t made of Teflon after all. While the MBS machine has remained resilient in recent months even as volume in the origination sector sagged, it appears that the difficult competitive environment, coupled with rising interest rates and... [Includes 2 charts] Read More

ARMs Dominate Subprime Market Mix in Down Year

Rising interest rates and warnings about the risks of payment shock have apparently done little to dampen the appetite of subprime borrowers for adjustable-rate products. In fact, an analysis of the MBS market finds that more than three of every four subprime loans securitized this year had an adjustable-rate feature. According to data compiled by... [Includes one chart] Read More

Election Could Shift Balance On Predatory Lending Issue

The upcoming mid-term elections could have a profound impact on the subprime market – if the Democrats are able to wrest control of at least one chamber from a beleaguered GOP. As the Nov. 7 election day nears, many pundits believe that voter discontent with developments in Iraq and... Read More

Lenders Face Spate of New Litigation on Subprime Issues

It’s hard to tell who has been busier this year – the loan officers charged with drumming up new business for subprime lenders or the attorneys hired to represent them in court. Indeed, a review of court filings around the country suggests that... Read More

Borrowers Pay Less With Brokers, New Study Claims

Borrowers who go to mortgage brokers for their subprime loans get a better deal than those who deal directly with lenders. That was the key finding of a study released last week by the researchers at the George Washington and Oklahoma State Universities, which found... Read More

Ameriquest Led High-Priced Market in ’05, HMDA Shows

Ameriquest Mortgage and its Argent Mortgage affiliate were the top originators of higher-priced loans last year, a new analysis of Home Mortgage Disclosure Act data reveals. The analysis focused on the origination of rate-spread loans, a category that includes first-lien... [Includes a one page chart] Read More

Homebridge Name Change Takes Aim at Refinances

New York-based mortgage bank, Homebridge Mortgage Bankers, has changed its name as part of a strategy designed to position the lender as the “authority” on refinance lending. “If you hurt your back, you don’t go to a general practitioner, you go to a... Read More

Competition Still Causing Problems for Some Lenders

Rising interest rates and a slowdown in home price appreciation may finally be taking a toll on the subprime mortgage market, where many lenders are reporting significant downturns from last year’s production level. New Century Financial reported that its... Read More

Doc Status and FICO Mostly Related, IBCL Analysis Finds

Are alternative documentation loans going to the least sophisticated subprime borrowers or the savviest? Lenders say the answer is obvious: the risks associated with reduced documentation are being offset by stronger borrower credit and... [Includes one chart] Read More

Fannie Mae Looks to Expand Presence in Subprime Market

With its business slipping and the government-sponsored enterprises facing increased competition from the private market, Fannie Mae this week acknowledged that it plans on expanding its role in the subprime market. At a press conference this week in Chicago... 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 mortgages and option ARMs and to shop more effectively for a loan. The 17-page booklet, “Interest-Only Mortgage Payments and... Read More

B&C News Briefs

Freddie Mac says it won’t buy high-cost loans originated in Tennessee or Rhode Island. The GSE announced the policy in Bulletin 2006-4 last week. The new purchase requirements apply to... Read More

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