Home » Newsletters » Inside Nonconforming Markets

Inside Nonconforming Markets

May 18, 2007

View Archived Issues

Subprime Originations in First Quarter of 2007 Lowest Since 2003

Mortgage originations in the rapidly shrinking subprime market fell drastically in the first quarter of this year. An analysis by Inside B&C Lending found that $95 billion in subprime mortgages were originated in the first three months... [Includes two charts] Read More

Congress Urges Regulators to Enforce HOEPA, FTC Act

Influential lawmakers are leaning on the Federal Reserve Board to use its existing regulatory powers to toughen underwriting for subprime mortgages and curb predatory lending practices. However, the Fed has indicated that it is being cautious about restricting... Read More

Investors Weary of Lenders’ Underwriting Adjustments

Subprime lenders have touted their tightened underwriting guidelines over the past six months, and point to the large drop in originations in the first quarter of 2007 as proof that fewer subprime borrowers are receiving mortgages due... [Includes one chart] Read More

Servicers Increasing Use of Subprime Loan Modifications

Most mortgage-backed securities contracts afford servicers great leeway to modify loans expected to default, according to the American Securitization Forum. This authority is one less hurdle on the road to helping subprime borrowers deal with payment shock... Read More

Proposed Subprime Guidance Overreaches, Lenders Warn

If federal regulators implement their proposed subprime guidance without changes, a significant number of borrowers will not qualify for hybrid adjustable-rate mortgages, according to lenders. The comment period for the proposed statement on subprime hybrid... Read More

Congress Considering All Aspects of Assignee Liability

Leaders in the House are considering including assignee liability in a legislative fix for the subprime market’s recent woes, but overcoming strong Republican opposition will be far from a slam dunk.At a hearing last week by the House Financial Services Committee’s... Read More

Subprime MBS Downgrades Hit Records in 2007, Continue

Mortgage-backed securities faced more downgrades than upgrades by Standard & Poor’s in the first quarter of 2007, reversing the trend of recent quarters. The change was led by the weak performance of subprime MBS, and the rating service warns that downgrades will... Read More

Moody’s Concerned About Buyouts by Equity Firms

Lenders acquired by private equity firms might find their profitability and credit ratings compromised, according to Moody’s Investors Service. The rating service noted that lenders do not have regulatory capital requirements, making them prime targets for... Read More

B&C News Briefs

Fair Isaac this week said it will recalibrate its credit scoring... The National Community Reinvestment Coalition this week settled... New Century Financial agreed to sell its servicing platform to... Equity One, a mortgage unit owned by Popular Inc., recently agreed... Read More