Federal guidance on nontraditional mortgage products appears already to be reshaping the marketplace with originators anticipating more scrutiny from investors and potentially less demand from consumers, who should get clearer information on how the complex loan products work...
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While the origination engines of major lenders continue to churn out nontraditional mortgage products to fill borrower demand for affordability products, servicers and investors are preaching caution about buying loans in a segment that many see as...
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The Alternative A origination market proved remarkably robust during the first nine months of the year, given the slowdown that has affected other sectors. In fact, while the prime and subprime markets are bracing for... [Includes a chart]
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Forty and 50-year mortgages are moving off of the drawing board and into the mainstream of the mortgage market as lenders increasing rely on the long-term amortization product to satisfy borrower appetite for low-risk affordability products. Indeed, nary a...
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Groups representing state bank regulators and licensing authorities have proposed new guidance on nontraditional mortgage products – and as expected, the draft circulated by the Conference of State Bank Supervisors and the American Association of Residential Mortgage...
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Lenders need to address the risks posed by products with “nontraditional” features such as interest only terms or adjustable rate, according to a recent report by Fannie Mae. The government-sponsored enterprise warned that such products are being...
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Federal bank and thrift regulators are seeking more information about the volume of negative amortization loans that depository institutions are holding on their books. “When loans with negative amortization are not prudently underwritten and not properly...
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