Banks Continue to Tighten Lending Standards
Although banks have eased up on increasing restrictions for many types of lending, mortgage guidelines continued to tighten. While fewer banks made fewer changes to restrict the issuance of home-secured credit lines, borrowers showed less interest in such products.
Banks continued to tighten standards on residential loans during the past three months, according to the January 2010 Senior Loan Officer Opinion Survey on Bank Lending Practices released today by the Federal Reserve Board.
Most of the tightening was with nontraditional mortgages, though a small fraction also increased restrictions on prime mortgages.
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Non-Conforming Performance Seriously Bad
An analysis of loan performance on securitized non-conforming mortgages issued between 2005 and 2008 indicates that non-conforming lending was a colossal failure during those years.
2nd Upgrade for Subprime Servicer
For the second time in 12 months, a servicer of subprime and second-lien loans has had its servicer rating raised.
Fundings, Delinquency Deteriorate at US Bank
U.S. Bancorp reported a 25 percent decline in quarterly residential originations, though annual activity improved. Tucked away in the latest activity was nearly $10 million in subprime mortgage production.
Over $300 Billion in Alt-A RMBS Face Downgrade
Following a similar warning yesterday on more than $300 billion in subprime mortgage-backed securities, Moody's Investors Service warned today that it might downgrade more than $300 billion in Alt-A RMBS.
Severe Nonprime Negative Equity
A newly released government report indicates that most subprime borrowers in the Las Vegas, Phoenix and Miami metropolitan areas are underwater, while at least half are upside-down in eight other major markets.
Subprime RMBS Warning
Worsening loss projections led to a warning on more than $300 billion in subprime mortgage-backed securities.
Wave of I.O. Recasts Ahead
Over $100 billion in prime and nonprime interest-only loans are scheduled for a payment recast during the next two years, and delinquency is expected to more than double on those loans.
Record HEL Delinquency as Overall Consumer Improves
Quarterly delinquency on home-equity loans and home-equity lines-of-credit climbed to the highest level on record at U.S. banks. But overall consumer delinquency improved.
BoA Servicing Unit Deteriorating, Downgraded
A mortgage servicing subsidiary of Bank of America Corp. saw its nonprime servicer ratings downgraded over high executive turnover and increased use of contract employees.
