Cart

Inside Nonconforming Markets

December 23, 2010

View Archived Issues

Underwater Defaulters Keep HELOCs Current, Little Progress Made on Second Lien Mods

A large number of borrowers who stopped paying their first lien obligations because they had negative equity remain current on their home-equity lines of credit, according to new research by the Federal Reserve Bank of Philadelphia. While borrowers have economic incentives to keep...[Includes one data chart and one graph] Read More

Non-Agency Activity to Remain Constrained in 2011

The impediments that have hindered non-agency originations and securitization since 2007 are likely to remain next year, according to industry analysts. “Investors expecting a resurgence of new issue deals in 2011 are likely to be disappointed,” analysts at Barclays Capital said. “A few deals will... Read More

Servicers, Non-Agency MBS Investors Seen at Odds

Servicers of non-agency mortgage-backed securities do not share investors’ goal of maximizing the net-present value of a distressed mortgage, according to a new paper by Adam Levitin. “Servicers’ decision of whether to foreclose or modify a loan is based on their own cost and income structure, which is... Read More

BofA Allegedly Violated Terms of Mod Settlement

Arizona’s attorney general sued Bank of America last week, alleging that the servicer violated terms of a 2008 settlement with state AGs regarding subprime mortgages and option ARMs. Arizona AG Terry Goddard said BofA failed to make timely decisions on modification requests and proceeded... Read More

Penalties Possible for Non-Prime HAMP Servicers

Non-prime Home Affordable Modification Program servicers could face increased scrutiny from the Treasury Department due to potential discrepancies regarding trial mod failures. The Treasury has been reluctant to levy significant penalties against HAMP servicers, but officials suggest that harsher enforcement is... Read More

Non-Agency Losses were Lower with Risk Retention

A form of risk retention common during the non-agency market’s boom resulted in significantly lower losses, according to academic researchers. The risk retention was even lower than the 5 percent retention that will soon be imposed... Read More

Rescission Change Could Lead to Predatory Loan

Consumer advocates warn that a proposal by the Federal Reserve to limit borrowers’ right of rescission will cause predatory lending to increase. The Mortgage Bankers Association supported the change, claiming that it would help avoid unnecessary litigation and reduce costs. The Fed proposed... Read More

News Brief

California Joins Wells Fargo Option ARM SettlementCalifornia this week agreed to join an option ARM settlement initially reached in October between Wells Fargo and eight state attorneys general. As part of the settlement, Wells will offer... 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