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Inside Nonconforming Markets

January 26, 2007

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Problems Continue to Mount For Subprime Lenders

Lenders catering to subprime borrowers continue to falter, with four small shops closing in the last two weeks while larger lenders pin layoffs on the market’s downturn. The Mortgage Bankers Association said lender consolidation will continue as the market reacts... Read More

Investors, Not Regulators, Bringing Sense to Subprime

Subprime lenders are tightening their underwriting standards in response to investors, not regulators. Those that do not adjust will face the fate a number of subprime lenders met in recent months: closure. The subprime market is entering a “perfect storm” of... Read More

Grudgingly, FDIC Reaffirms Its Predatory Lending Policies

Responding to persistent pressure to fight abusive mortgage lending practices, the Federal Deposit Insurance Corp. this week reiterated its existing policies and reminded lenders that predatory lending is a safety and soundness issue.In a letter sent to the banks it... Read More

Investors Concerned about Record Subprime Defaults

Subprime loan defaults and repurchase requests are likely to grow in 2007, Moody’s Investors Service predicted. Subprime shops also can be expected to move into Alt A originations, threatening credit standards for the sector. The rating service said defaults on... Read More

Lehman Brothers Tops Subprime MBS Shelves

Lehman Brothers’ SASCO shelf registration was the most active producer of subprime mortgage-backed securities in 2006 despite a sharp downturn in volume from the previous year.According to the Inside Mortgage Finance MBS Database... [Includes two charts] Read More

Study: Subprime Market Embraces High Risk Products

While the mortgage market pioneered the development of alternative loans for wealthy borrowers with strong credit profiles, a number of the most risky products appear to be increasingly finding their way into the subprime lending business. That’s one of the key findings... Read More

Subprime NIM Issuance Up Slightly in 2006

A drop in subprime mortgage-backed securities issuance in 2006 did little to slow the subprime net interest margin sector. After a slow third quarter, NIM securities issuance bounced back in the fourth quarter, giving subprime NIM issuance a... [Includes one chart] Read More

Credit Suisse, Barclays Eyeing Subprime Wholesalers

Credit Suisse, the last investment bank without a subprime origination shop, is in talks to buy subprime wholesaler ResMAE. Meanwhile, Barclays Bank is set to acquire subprime wholesaler EquiFirst. Credit Suisse recently signed an “option agreement” to buy... Read More

B&C News Briefs

Standard & Poor’s recently announced that it is monitoring the servicing activity of... KeyCorp recently reported a $165 million after-tax charge related to the... Equifin Capital Partners, a New York-based private equity firm, recently... Subprime mortgage-backed securities accounted for 24 of Standard & Poor’s... Read More