Since it proposed overhauling regulation of the subprime market in December, the Federal Reserve has acknowledged that some Alt A loans will be subject to the new rules. However, lender and mortgage investor trade associations recently warned...
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Lenders sent fewer interest-only mortgages to Fannie Mae and Freddie Mac in the first quarter of 2008 compared with previous recent quarters, though production is still fairly strong. Fannie and Freddie are on pace to purchase... [Includes two charts and one graph]
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The Department of Housing and Urban Development last week unveiled much-anticipated changes to the FHASecure program, slightly easing the requirements for delinquent borrowers. Under the expanded program guidelines, borrowers with...
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After increasing their share of the Alt A market in recent years, the government-sponsored enterprises were expected to control a large part of the jumbo market as well after receiving a temporary boost to their loan limits. Two weeks into the programs...
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The leader in option-adjustable rate mortgage lending took a massive hit from the products this week. Wachovia posted a $350 million loss for the first quarter of 2008, in large part due to the bank’s option ARMs. Wachovia said it will tighten its underwriting on...
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With the success of a lawsuit against Chevy Chase Bank, more borrowers with option adjustable-rate mortgages are going after lenders in court. The claims hinge on disclosure requirements under the Truth in Lending Act and attorneys warn that the claims are...
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The federal safety and soundness regulator of the government-sponsored enterprises is urging the GSEs to improve their credit risk modeling in a move that could cut their appetite for Alt A mortgages. In a report to Congress released this week, the Office...
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