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Inside Nonconforming Markets

March 9, 2007

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Fremont Exits Subprime Business Following FDIC Warning

Fremont Investment and Loan is out of the subprime mortgage business and up for sale following a cease-and-desist order from the Federal Deposit Insurance Corp, which called for the wholesaler to restrict its subprime lending. The agency based its order, in part, on Fremont’s... Read More

Wholesale Channel Increases Subprime Share in 2006

Wells Fargo fell from its perch as the top subprime retail and wholesale producer in 2006, a new Inside B&C Lending analysis reveals. And the retail channel continues to play a diminished role in subprime originations. Wells fell out of the... [Includes two charts and one graph] Read More

Regulators Propose Subprime Hybrid ARM Guidance

Federal regulators issued a “statement” on subprime hybrid adjustable-rate mortgages last week. At this week’s Federal Reserve consumer advisory council meeting, outgoing Fed governor Susan Bies said the regulators purposefully did not define “subprime” and called it... Read More

Freddie Tightens Subprime Hybrid ARM Requirements

Freddie Mac scooped federal regulators by announcing its own tougher standards for hybrid adjustable-rate mortgages. And industry observers suggest that the changes could have more bite than the proposed federal guidance. The government-sponsored enterprise said it... Read More

New Century Facing Funding Problems, Investigations

Accounting irregularities may deal a death blow to New Century Financial, already reeling from declining earnings. In a March 2 filing with the Securities and Exchange Commission, the lender said it could lose its warehouse funding, creating “substantial doubt”... Read More

Subprime Delinquencies Increasing, Outpace Prime

The cries of alarm are not exaggerated. Subprime delinquencies really are climbing rapidly, with the rate more than doubling in the past year for some lenders. While offering somewhat different takes on the cause, analysts agree that the problems are unique to the... Read More

Citi Bails Out Ameriquest, Could Acquire Wholesale Unit

Ameriquest received a life-line from Citigroup at the end of February and the lender could be acquired by the bank. Citi will provide Ameriquest’s wholesale unit, ACC Capital Holdings, with funding and become Ameriquest’s primary warehouse lender. Ameriquest owner... Read More

Moody’s: Investment Grade Subprime MBS ‘Okay’

While recently originated subprime mortgages are performing poorly, especially compared to previous vintages, Moody’s Investors Service notes that the performance will have to get a lot worse to harm investment grade subprime mortgage-backed securities. In a recent... Read More

B&C News Briefs

Citadel Investment Group outbid Credit Suisse to... A recent report by Standard & Poor’s confirmed... Accredited Home Lenders said completing its... Ameritrust Mortgage closed its subprime... Subprime wholesaler Central Pacific Mortgage... Nationstar Mortgage completed its acquisition... Subprime wholesaler Creative Mortgage Lending... Residential Funding Company recently transferred Read More