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.

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.

Alternative Lifestyles

2002 Alt-A securitizations to reach record $41 billion

November 5, 2002


Alt-A mortgage securitizations should reach a record-breaking $41 billion by the end of 2002, according to a report by Moody's Investors Service. The mortgage loans also are expected to increase about 50% over 2001's volume.

"Just like other mortgage loans, low interest rates are fueling Alt-A issuance," said assistant vice president/analyst Joseph Grohotolski.

Alt-A mortgage loans are a credit-quality rung below prime quality jumbo, but better than a B or C subprime loan.

"Alt-A mortgages are made to A-quality borrowers, as with other prime mortgage loans," said Terry Osterweil, director of Residential Mortgages at Standard & Poor's. "But the loans have characteristics that make them nonconforming under typical Fannie Mae and Freddie Mac guidelines. For instance, the loan-to-value (LTV) ratios may be higher than usual, the loans may have certain limited documentation, or the homes may be vacation or investor properties with higher LTV ratios," he said in a 2001 announcement, when S&P began assessing the risk of such loans.

In the average loan pool backing recent Alt-A securitizations, FICO scores have ranged from 675 to 705, the report said. In addition, investor and multifamily properties have ranged from 5% to 35%, full documentation loans have often been significantly less than 90% and the LTV has ranged from 75% to 85%.

In November 2001, The Wall Street Journal reported a tightening of credit standards for borrowers that utilize no-income verification loans, jumbo loans, and subprime loans. The changes reflected concerns that rising unemployment and slowing home-price appreciation would result in more mortgage defaults in the future.

The publication reported that Chase Manhattan Mortgage had raised its minimum credit score requirements to 680 from 660, and Greenpoint Mortgage had raised its minimum credit score on no-documentation loans to 660 from 640.

"The AAA credit enhancement for Alt-A securitizations that we've been seeing over the past two quarters has been between 4.75% and 9.00%," Moody's Grohotolski said. "Issues driving this credit enhancement are often very specific in terms of originator practices."

The report, "What's In A Name -- Divergent Characteristics, Performance Among Alt-A Securitizations," was released Monday.

Christy Robinson is the editor of MortgageDaily.com. She received a bachelor's degree in news-editorial journalism from The University of Texas at Arlington. Her work has previously been published in The Dallas Morning News.

email Christy at: [email protected]

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