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Inside Nonconforming Markets

June 1, 2007

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Subprime Servicers Adjust as Loans Continue to Perform Poorly

The portfolios of subprime servicers are in flux as the servicers work to stem an increase in foreclosures. While volume in the portfolios increased from year-ago levels, according to estimates by Inside B&C Lending, the volume of subprime... [Includes one chart] Read More

Mozilo Predicts Subprime Recovery in Mid-2008

Subprime origination volume will continue to sag through the middle of next year before production picks up again, predicts the founder of Countrywide Financial. At the Mortgage Bankers Association secondary market conference last week in New York City, Angelo Mozilo... Read More

Fannie’s Subprime Rescue May be Tough to Qualify For

Fannie Mae recently pledged to invest billions of dollars to help subprime borrowers refinance into prime products, but as details on the program emerge, it looks like it may be difficult for many subprime borrowers to qualify. The government-sponsored enterprise... Read More

Delta Finds Profits with Unique Business Model

Delta Financial looks to be succeeding where other subprime lenders have failed by acting more like a prime lender. In stark contrast to most of its subprime competitors, Delta originates primarily fixed-rate mortgages, avoids offering risky products, has a diversified... Read More

Subprime Guidance Nears Completion, Congress Stalls

With comments collected on the proposed federal guidance on subprime mortgages, regulators are hashing out its final shape. Meanwhile, anti-predatory lending legislation that had been expected to surface on Capitol Hill has yet to materialize, and might not, according... Read More

Lacking HPA, California’s Subprime MBS a Concern

After years of double-digit home price growth, home prices for properties backing subprime mortgages barely moved last year, according to Fitch Ratings. This could cause major performance problems for subprime mortgage-backed securities as default rates... Read More

Subprime MBS Pricing Becoming More Rational

Investors are beginning to price subprime mortgage-backed securities more rationally, which hastened the exits of a number of subprime lenders, according to analysts. However, MBS issued last year are expected to face increased downgrades due to deteriorating... Read More

Subprime Residuals a Tough Sell in First Quarter of 2007

Countrywide Financial took a large hit to its earnings in the first quarter of this year due to the performance of its non-investment grade subprime mortgage-backed securities. The lender/issuer said investors were wary of the residuals in the first quarter but... Read More

B&C News Briefs

Fremont Investment & Loan recently revealed that hedge fund Ellington Capital Management purchased the company’s subprime business. The sale, for an undisclosed price, was first announced in April and also includes $2.9 billion in subprime loans and the... Read More