Lenders that once touted their non-prime originations are denying all connections to the sector as production of the mortgages has all but stopped. An estimated $50.0 billion in non-prime mortgages were originated through three quarters of this year, according to Inside B&C Lending, an 88.2 percent decline from the same period in 2007.Some of the non-prime... [Includes one chart and one graph]
Read More
One of the Alt A market’s leading originators is looking to provide financing to doctors and accountants who can’t document their income enough to meet current mortgage underwriting standards. “Underwriting has gotten too tough,” said Joseph Tomkinson, chairman and CEO of Impac Mortgage Holdings, in an interview this week. He noted that high quality Alt A borrowers...
Read More
Lenders looking to refinance troubled borrowers into the HOPE for Homeowners program received some relief last week. The Department of House and Urban Development loosened H4H guidelines in an effort to boost the program after a lackluster launch in October. Most significantly, HUD increased the maximum allowable loan to value ratio on H4H mortgages to 96.5 percent, in...
Read More
The federal government’s new financial aid package for Citigroup announced this week underscores the Bush administration’s failure to take similarly decisive action to reduce mortgage foreclosures, according to Rep. Barney Frank, D-MA, chairman of the House Financial Services Committee. The Treasury Department and the Federal Deposit Insurance Corp. said they will insure $306...
Read More
The Federal Deposit Insurance Corp. recently unveiled a proposal to modify 2.2 million non-agency mortgages, with servicers receiving $1,000 per completed mod. While the Treasury Department has declined to pay program costs with money from the Troubled Asset Relief Program, the FDIC last week introduced a “mod in a box” program based on the federal regulator’s experience with IndyMac Bank...
Read More
After three defeats in the past year, cramdown legislation was reintroduced in the Senate last week. Sen. Charles Schumer, D-NY, predicted that Congress will approve the legislation next year.“Next year, with support from the Obama Administration, it will pass,” he said. “We will not get to the bottom of this economic crisis until we get to the bottom of the mortgage crisis. And to...
Read More
While the federal government continues to search for ways to help troubled borrowers, a number of states have moved to increase the appeal of loan modifications and extend foreclosure timeframes. Analysts note that the Constitution sharply limits states’ ability to enact laws that retroactively modify existing contracts between private parties, but that has not stopped states from getting...
Read More
Federal regulatory thresholds for higher-priced loans need to be adjusted, the Consumer Mortgage Coalition warned in a letter sent to the Federal Reserve last week. “While the premise that interest rates can distinguish prime and subprime loans may have been supportable based on the market data prior to 2008, events have overtaken prior data and analysis,” the CMC said...
Read More
Beginning March 1, Freddie Mac will no longer purchase mortgages originated with... The Office of Thrift Supervision closed Downey Savings and Loan Association last...Fitch Ratings updated its subprime mortgage-backed security loss... Moody’s Investors Service warned that many Alt A mortgage-backed securities are... The National Community Reinvestment Coalition filed a discrimination complaint...
Read More