Concerns about default risks and an uncertain regulatory environment have done little to diminish the fervor of the mortgage market’s heavyweights, who continue to make interest-only loans, option ARMs and other nontraditional products a key part of their product menus. Washington Mutual is so stoked about the outlook for nontraditional products, for instance, that the thrift plans to sell its entire $140 billion government-insured servicing portfolio and cut back on its origination of conventional fixed-rate mortgages in order to...
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Much of the production from a rapidly growing Alt A market appears to be finding its way into the secondary market through securitization. That was clearly the case during the first half of 2006, when a record $180.29 billion of Alt A mortgages were securitized, according to data compiled by the Inside Mortgage Finance MBS Database...
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Add Wells Fargo to the growing list of lenders courting borrowers who want to keep their payments low while avoiding the payment shock risks associated with interest-only loans and option ARMs. The Des Moines, IA-based lender last week rolled out a 40-year fixed-rate loan program for its prime and nonprime borrowers through its Wells Fargo Home Mortgage and Wells Fargo Financial affiliates...
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Officials at one of the alternative mortgage market’s largest players, IndyMac, say they got an important wakeup call from the discovery of fraud in one of the company’s best established niches – loans to borrowers seeking to purchase lots of lands and build homes...
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Want to capture more Alt A mortgage business through your correspondent lending network? Focus on developing strong flow programs that allow correspondents to control underwriting. That was one of the key findings of a new nationwide survey of correspondent lenders sponsored by Inside Mortgage Finance Publications and conducted by Campbell Communications over the past month...
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New option ARMs with fixed-rate features are making their way into the mortgage market in increasing numbers. But rating agency Standard & Poor’s has warned that the possibility of negative amortization could undercut the benefits that borrowers derive from rate certainty. S&P unveiled rating criteria for a new breed of option ARMs designed to reduce the potential for payment shock by fixing the interest rate for an initial period that usually ranges from 3 to 10 years...
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