home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map

twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

Real Estate News | Real Estate Statistics
Residential real estate news and coverage of how residential real estate impacts the mortgage industry and residential mortgage-backed securities.

Slow Appreciation Stressing Subprime

Fitch report looks at 2006, 2007 vintages

March 21, 2007

By MortgageDaily.com staff

Slowing residential appreciation combined with rising adjustable-rate mortgage payments will put stress on recent subprime loans, according to a new ratings agency report.

Rising delinquencies have been felt most acutely in the ABX-HE-2006-2 (06-2) and ABX-HE-2007-1 (07-1) CDS indexes, Fitch Ratings announced today.

The New York-based agency said it believes 2006 subprime vintage delinquencies and losses may continue on a relatively high trajectory, "increasing downgrade risk for the lowest-rated investment grade bonds backing the index."

The sensitivity is due to higher exposure to slower appreciation and riskier low documentation loans to subprime borrowers with piggyback second liens, Fitch reported.

Approximately 75 percent of the underlying loans in the 06-2 index and 90 percent of loans in the 07-1 index have experienced less than 5 percent property appreciation subsequent to origination, Senior Credit Policy Director Suzanne Mistretta said in the announcement. In contrast, the ABX-HE-2006-1 index (06-1) had just 26 percent of the loans with less than 5 percent appreciation.

"In particular, lower [home price appreciation] for the 06-2 and 07- indices has increased the risk that overextended borrowers can sell or refinance if they find themselves unable to meet the monthly payment," Fitch said.

Full-documentation loans with no junior liens, which made up around 44 percent of loans from all three indexes, have been performing well, the statement indicated.

But "subprime loans underlying the three indices could face more stress in the future since most of the underlying transactions contain hybrid adjustable rate mortgages that have not yet experienced a rate adjustment," Managing Director Glenn Costello said in the statement.

Nonprime and Subprime News | Subprime Statistics
Stories about non-QM products. Coverage of subprime, Alt-A and
hard money lending. Home-equity loans and home-equity lines of credit.

Servicing News | Servicer Ranking | Delinquency Statistics
Stories about mortgage servicers, delinquency and f o r e c l o s u r e s. Coverage of servicing lawsuits and loan servicing technology.

Mortgage Backed Securities | MBS News | MBS Statistics
News about commercial and residential mortgage-backed securities. Stories about ratings actions and changes to servicer ratings. Studies and reports about the performance of securitizations and problem vintages and classes. Subprime, Alt-A, home equity and j u m b o analysis.

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders