Cart

Inside Nonconforming Markets

October 15, 2010

View Archived Issues

Extension of ‘Temporary’ Loan Limits a Setback to Revival of Non-Agency Market

An estimated $25 billion in jumbo originations may be excluded from the non-agency mortgage market next year due to the recent extension of “temporary” conforming loan limits. While lenders claim that the extension will help borrowers and the overall housing market, it will also delay a revival of... Read More

Servicers to Take Brunt of Foreclosure Scrutiny

Increased attention on the foreclosure process will impact servicers much more significantly than non-agency mortgage-backed security investors, according to analysts. Servicers will be expected to painstakingly review foreclosure documents while the impact of delayed foreclosures on... Read More

SEC Proposes Retroactive Repurchase Disclosures

Non-agency mortgage-backed security investors would receive unprecedented disclosures under a proposed rule issued last week by the Securities and Exchange Commission. The SEC proposed greater transparency for reps and warranties and repurchase history for all MBS outstanding and MBS issuance going forward. The proposed rule was prompted by... Read More

BofA Defeats Two Mortgage Repurchase Lawsuits

Bank of America recently defeated mortgage investors in two separate repurchase-related lawsuits, including a major decision this week. With a number of buyback actions still pending, mortgage investors will likely learn from the rulings and increase their repurchase efforts. This week a judge dismissed a lawsuit by Greenwich Financial Services against... Read More

Risk Retention to Alter Non-Agency Structure

Risk-retention requirements will likely alter the future structure of non-agency mortgage-backed security issuance, according to analysts. The changes are being prompted by the Federal Deposit Insurance Corp.’s new securitization safe harbor and impending interagency risk-retention rules. After federal regulators finalize risk-retention rules, analysts at Deutsche Bank said... Read More

Non-Agency Re-Default Rates Improve in 2010

Re-default rates on mortgages in non-agency mortgage-backed securities decreased as servicers have improved the quality of loan modifications in the past year. Re-default rates on mortgages held in portfolio continue to be significantly lower than re-default rates on mortgages in non-agency MBS. The re-default rate 6 months after modification on... [Includes one data chart and one graph] Read More

Wells Fargo Settles Option ARM Allegations

Wells Fargo – the top-ranked option ARM servicer – last week reached a settlement with eight state attorneys general regarding the marketing of option ARMs. The terms of the settlement require principal forgiveness for certain option ARM borrowers. The state AGs estimate that the settlement will result in... Read More

Agencies Bought Most Higher-Priced Mortgages

Ginnie Mae, Fannie Mae and Freddie Mac accounted for the largest share of purchases of higher-priced mortgages in 2009, according to a new analysis by Inside Nonconforming Markets of data from the Federal Reserve. The agencies’ share of higher-priced mortgage purchases remained high due to... [Includes one data chart] Read More

News Briefs

Delinquencies on home-equity loans improved in the second quarter of 2010 compared with the previous quarter, according to the American Bankers Association. HEL delinquencies fell from 4.12 percent to 3.97 percent. The Securities and Exchange Commission recently charged two former State Street Bank and Trust Company employees with... Read More

Latest Imf News

More Imf News

Featured Data

More Featured Data

Featured Reports

More Latest Reports

Featured Poll

As homeowner equity continues to build, more and more lenders are launching home equity lending products. Are you thinking of joining this market?

View Results