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Inside MBS & ABS

October 12, 2007

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Subprime Panic Stuns Non-Agency MBS Issuance In Third Quarter, Collateral Shifts Accelerating

The rapid disintegration in the subprime mortgage securities market spread quickly to the Alt A business and took down a big chunk of the jumbo sector as well during the third quarter of 2007, according to a new ranking and analysis by... [Includes five charts] Read More

Credit Enhancement Requirements for Nonconforming Mortgage Securitization Grew More Costly in 3Q07

The cost of securitizing subprime and Alt A mortgages became significantly more expensive as the liquidity squeeze tightened during the third quarter of 2007. According to a new analysis by Inside MBS & ABS, credit enhancement levels... [Includes one chart] Read More

Bankruptcy Legislation Could Wreak Havoc In the MBS Marketplace, Industry Reps Fear

Legislation that would allow bankruptcy judges to modify the terms of a home loan in a Chapter 13 proceeding could create turmoil in the mortgage securities market and worsen the credit crunch, say mortgage industry lobbyists working to convince Congress not to... Read More

Ginnie Will Soon Decide How to Securitize Loans Insured by FHASecure Program

Ginnie Mae will soon announce how it plans to securitize FHA’s new refinance product aimed at helping troubled borrowers with adjustable-rate mortgages, according to Ginnie officials. A decision is expected today or Monday. Industry observers suggest Ginnie will... Read More

2007 Vintage of Subprime MBS Indistinguishable From 2006 in Terms of Underwriting and Performing Worse

The default rate on subprime MBS issued this year continues to worsen as there appears to be little difference in the underwriting quality of loans originated in 2007. The performance of the subprime MBS issued in this year “deteriorated sharply” in... Read More

Industry Proposes Letting FHLBanks Aid Market By Buying More MBS; Will Finance Board Sign Off?

There is growing political momentum backing a proposal that the 12 Federal Home Loan Banks be allowed to increase their holdings of mortgage-backed securities. The FHLBanks are currently allowed to own MBS in amounts equal to three times their level of... Read More

Standard & Poor’s Revises Its Guidelines For Assessing Impact of Loan Modifications

Standard & Poor’s this week released guidelines that spell out how the company weighs the risk of loan modifications in non-agency MBS and the adjustments it will make for loan modifications. Under its revised guidelines, the rating service tries to balance both the... Read More

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