MBS Volume Spirals
Led by a 93 percent decline in residential mortgage-backed securities volume, mortgage loan securitizations have tumbled so far this year. Commercial MBS issuance was off 91 percent.
Alt-A Issuances Annihilated Again
Classes of Alternative-A residential mortgage-backed securities continued to be downgraded in light of deteriorating conditions. But some classes of commercial MBS saw positive ratings actions.
Commercial Lender Bankrupt
Following the apparent suicide of its chairman and chief executive officer, an Arizona firm has filed for bankruptcy protection.
Fifth Third Halts Residential Development Loans
Fifth Third Bancorp has stopped financing residential property developments.
Alt-A Avalanche
Residential mortgage-backed securities backed by Alternative-A loans were the target of a series of downgrades, though a number of commercial MBS saw upgrades.
Corporate Ladders & Slides
IndyMac Bancorp Inc. is facing its third investor lawsuit in one week, while several other banks are facing orders from a federal banking regulator. Other recent corporate activity includes a name change for a wholesale reverse mortgage lender the unloading of $14 billion in nonprime and commercial securities by a major investment bank.
Commercial Broker Programs Accelerate
While nonprime wholesale lenders have become scarce, several commercial mortgage companies are touting programs for virtually any type of property with loan amounts ranging from $150,000 to $100 million. One commercial mortgage product is being touted with loan-to-values as high as 90 percent, and another program is available for land financing.
Digital Mortgage Universe Expands
A reverse loan origination system has been launched, while an LOS for standard mortgages has integrated hazard insurance functionality. Other mortgage technology advancements include the addition of an Alt-A wholesale lender to a loan search engine, the implementation of automated underwriting for commercial mortgages and a legal truce between two credit reporting companies that has led to a credit scoring collaboration.
Widespread Tightening of Underwriting Standards
A new banking report has confirmed the obvious: Few banks, if any, are easing underwriting guidelines on home-equity, residential or commercial mortgages while plenty are tightening.
