PHH Improves From Q4
PHH Mortgage saw quarterly originations rise, earnings improve and delinquency drop compared to the prior period.

First-quarter loan production was 42,123 loans for $10.0 billion, according to earnings data reported by parent PHH Corp.

Fundings rose from 37,526 loans for $8.3 billion in the fourth quarter and 44,023 units for $9.4 billion a year earlier.
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Commercial Loan Liquidity Still OK
Despite growing concern that a major wave of balloon payments on commercial mortgages coming due would have difficulty refinancing, a new report indicates these borrowers are finding lenders. But that hasn't stopped delinquency from rising.

Foreclosure Drama
Politicians in three states have recently proposed or implemented foreclosure moratoriums ranging from one month to two years, while a Chicago-based group is recommending a plan that would turn foreclosed borrowers into renters then back in to borrowers. Meanwhile, a new report analyzed the impact of foreclosures on children.

N.Y. Assembly Approves 1-Year Moratorium
One of New York's state legislative bodies has declared a public emergency and passed a bill that would give judges the power to delay subprime foreclosures for up to one year. Another bill that passed requires mortgage brokers to have an agency relationship with loan prospects.

Downgrades Hit RMBS, CDOs & Scratch-and-Dent Deals
Since yesterday, downgrades have hit another 82 classes of Alt-A residential mortgage-backed securities, another half billion dollars in classes of scratch-and-dent deals and $2.4 billion more in classes of collateralized-debt obligations. But commercial MBS saw nine classes upgraded.

Secondary Conference, Transactions
As mortgage bankers hold their annual secondary marketing conference, banking associations are strengthening secondary alliances and enhancing rural financing programs. A $14 billion servicing portfolio of government loans is on the market, as is a portfolio of loans backed by apartments, condominiums and land, and another closing of a smaller transaction helped the seller clear out an expiring warehouse line.

Alt-A, Subprime & Prime RMBS Downgraded
The past five days have seen ratings downgrades to nearly $10 billion in classes of collateralized-debt obligations, nearly 200 tranches of Alt-A RMBS and more than $3 billion in classes of subprime residential mortgage-backed securities issued in 2003 and 2004. Even prime RMBS from 2003 and 2004 saw classes downgraded, though just a single commercial MBS class was downgraded.

Mergers Progress as Industry Struggles with Liquidity
The financial sector continued to scramble in an effort to shore up capital, with two public offerings raising more than $7 billion and two major mortgage lenders facing mounting pressure to complete a number of transactions. In other corporate activity, two servicing acquisitions made their way through the merger pipeline.

Foreclosure Fight Flourishes
Public and private institutions and organizations have been busy in the growing business of foreclosure prevention.

Bankruptcies Increase
The number bankruptcies filed by individual borrowers has increased for five consecutive months and is expected to exceed 1 million this year.