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Inside Nonconforming Markets

April 24, 2009

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GSE Alternative Mortgage Activity Almost Nonexistent in First Quarter of 2009

Fannie Mae and Freddie Mac significantly reduced their involvement in the alternative mortgage market in the first quarter of 2009. According to the Inside Mortgage Finance MBS Database, the government-sponsored enterprises only pooled $2.83 billion of interest-only mortgages... Read More

Lenders Seek Expansion of 'Qualified' Mortgages

Anti-predatory lending legislation pending in the House Financial Services Committee would exclude too many non-conforming loans from the “qualified mortgage” classification and severely curtail lender and investor interest in these loans, according to industry experts... Read More

PPIP Provisions Could Limit Participation

Participation in the federal government’s plan to purchase “legacy loans” could be limited due to restrictions placed on mortgages sold via the program. And the top-ranked subprime servicer has indicated that it will avoid the Public-Private Investment Program altogether... Read More

Cramdown Negotiations Continue, for Some

Democrats in the Senate continue to pursue a compromise on cramdown legislation, but major servicers remain opposed and some trade groups have avoided the latest round of negotiations all together. Senate leaders were hoping for a compromise as soon as this week, with a... Read More

HAM Program Vulnerable to Fraud, IG Warns

Hoping to ease implementation for borrowers and servicers, the Treasury Department has not established important anti-fraud measures on the Home Affordable Mortgage program, according to a report released this week by the Special Inspector General for the Troubled Asset Relief Program... Read More

Jumbo Delinquencies Continue to Increase

Delinquencies continue to pile-up for the non-agency sector’s most pristine product. The performance on jumbo fixed-rate collateral is deteriorating faster than fixed-rate Alt A collateral, according to analysts at Barclays Capital. While the poor performance is cause for... Read More

Fannie's HSA Dominates GSEs' Loss Mitigation

A loan program implemented by Fannie Mae in June accounted for a whopping 40.4 percent of all non-prime loss mitigation actions completed by Fannie and fellow government-sponsored enterprise Freddie Mac in the fourth quarter of 2008. Fannie’s HomeSaver Advance allows a qualified... Read More

Focus on DTIs and Mods Could be Misguided

Two of the major tenants of recent subprime loss mitigation public policy could be inappropriate, according to research by three economists and a professor recently published by the Federal Reserve Bank of Boston. The Fed economists found that “unaffordable” mortgages with... Read More

News Briefs

Holders of non-agency mortgage-backed securities could see another $260.0 billion in losses, according to Standard & Poor’s. The analysts said 45.0 percent of outstanding subprime MBS is classified as nonperforming along with 31.0 percent of outstanding Alt A MBS. Under... Read More

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