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The Future of Subprime Mortgage Lending

Darryl Linnington

Published On: February 1, 2026


Friction With
Fannie and Freddie

Some subprime lenders unhappy with GSE participation

MortgageDaily.com April 2

Risky Home Loans
May Take Hits

Bank examiners worried about lenders that make 125% ltv home equity loans

WSJ.com March 29
(subscription required)

S&P Projects 20%-plus
Jump in HELOC
Securitizations in 2001

Projection based on increasing size of HELOC securitizations, Mellon Bank & Fleet National Bank’s return to securitization market; and appreciating home prices

LendingIntelligence.com March 28

Money for everything

Tax-cut pitch rings hollow with home-equity argument

MarketWatch.com Mar 28

Rate This One

Recent subprime mortgage industry ratings actions

MortgageDaily.com March 27

SEC Investigating
PinnFund for
mortgage fraud

Allegations include fraudulent financial statements and charges that CEO diverted funds to porno-actress girlfriend

Yahoo.com March 26

RBMG Subprime
Production Falls

Decline follows jump in January

MortgageDaily.com March 23

Fed faces balancing act on mortgage rules-Gramlich

Predatory red flags are loans based on value of assets & not borrower’s ability to pay back

Yahoo.com March 23

Russians Find Mobile
Homes a Hard Sell

Touted as Answer to Shortage, U.S.-Style Housing May Still Be Out of Reach

WashingtonPost.com March 21

Downwardly Mobile

Manufactured housing industry seeing contraction

MortgageDaily.com March 20

NovaStar seen offering $408 mln home equity ABS

Home equity loan transaction will feature 4 classes of floating-rate notes

Yahoo.com March 19

Old Standards

Servicers talk about servicing nonstandard mortgage loans

MortgageDaily.com March 13

Tyco International
to Acquire CIT Group
for $9.2 Billion

Tyco already has $1 billion in loans on its books

WSJ.com March 13
(subscription required)

Subprime Leaders Network

National Home Equity Mortgage Association holds annual conference in California

MortgageDaily.com March 12

Countrywide
Subprime Fundings Jump
32% From January

Mixed results from home equity fundings

MortgageDaily.com March 12

GMAC unit seen
selling $1.5 bln
subprime home loan ABS

Seven-part AAA-rated RFC transaction will carry a financial guarantee from bond insurer FGIC

Yahoo.com March 12

Complaint Filed By FTC
Against Citigroup Unit

Complaint alleges predatory lending at Associates unit

MortgageDaily.com March 7

Ocwen to buy servicing rights to New Century loans

Deal is expected to cut New Century’s debt by $60 million

Yahoo.com March 1

Advanta Closes Sale
of Mortgage Business
to Chase

Cash price is in excess of $1 billion

Yahoo.com March 1

RBMG Subprime
Production Up 60%

January subprime mortgage loan production was $59.9 million

MortgageDaily.com February 28

GMAC unit to issue
$2.2 bln asset-backeds

$1.5 bil in subprime 1sts; $700 mil in mix of 1sts, 2nds & high LTV

Yahoo.com February 27

Boom in foreclosure sales hurts poor U.S. borrowers

Foreclosure scam linked to subprime lending; Chase taking a beating

Yahoo.com February 26

How to Avoid
Predatory Lenders

Investigate balloon payments, negative amortization and net cash proceeds

WashingtonPost.com February 24

Novastar Reports
Quarterly Profit

Net earnings were $2.3 million in
4th quarter

MortgageDaily.com February 12

Centex Home Equity Corporation Establishes Liquidity & Subordinated Note Program

Harwood Street Funding II, LLC formed to purchase mortgages from CHEC

PRnewswire.com February 12

Countrywide Subprime Production Up 18.5%

January subprime mortgage production $371 million

MortgageDaily.com February 9

Subprime Leaders To Meet In Palm Springs

National Home Equity Mortgage Association holding annual conference next month

MortgageDaily.com February 8

New Century Reports $43.1 Million Loss For Q4

Loan volume was $1.0 billion for quarter

MortgageDaily.com February 1

3rd Quarter Loss At Centex Home Equity

Company impacted from “Portfolio” method of accounting

MortgageDaily.com January 23

New Century Announces 4th Quarter Loss

Company previously announced net income estimates of $0.30 to $0.35 per share

MortgageDaily.com January 22

MBA Opposes HUD Data Collection Process

Additional reporting by GSE’s would help identify possible predatory lending activities

MortgageDaily.com January 8

Freddie’s Going Down
(in credit grades)

Freddie Mac Executive Indicates He’d Like To See All Subprime Borrowers Qualify For Freddie Mac Mortgages

MortgageDaily.com November 2


IndyMac Bank Ranked
#1 Mortgage Site for
3rd Consecutive Quarter
by Gomez

Company announcement points out that this is first time any lender held spot for three consecutive quarters

Yahoo.com March 6

Centex Home Equity Launches Checbroker.com

Site offers virtually instant access to loan pricing, rate sheets, calculators and a loan pre-qualification tool

PRnewswire.com February 1

E-loan Enters
Home Equity Lending

Company sold 342 home equity loans for a total dollar volume of
$13.9 million in fourth quarter

MortgageDaily.com January 26

Citigroup-Associates merger foes take fight online

TellCitibank.org provides information on Associates’ alleged involvement in predatory lending

Marketwatch.com January 24

Myers Internet Services Forms Strategic Alliance with New Century Mortgage Corporation

New Century brokers now able to submit loan applications via Internet

MortgageDaily.com January 24

Allied Mortgage and WMC Mortgage Announce Joint Venture to Market Non-Prime Underwriting Tool

Technology allows brokers to submit loans for automated underwriting to multiple lenders from a single, common underwriting system

Individual.com January 17

Tidalwave Set to Launch MobileHomeTrader.com

Automated underwriting available on wholesale manufactured housing finance web site

Individual.com January 9

EASY ROUTE

Banking online includes home equity loans from internet banks like DeepGreen

ChicagoTribune.com January 5

WMCDirect Online Loan Submission Now Available Through Genesis 2000 ePASS

Partnership provides Genesis 2000 users with seamless Internet connection to wmcdirect.com

Marketwatch.com December 8

IndyMac Bank’s No. 1 Mortgage Web Site Ranking Upheld by Gomez

Indymacmortgage.com named #1 overall online mortgage site for 2nd quarter in Gomez’s Internet Mortgage Scorecard

AOL.com December 5

Bridging The Gap

LoanTrader.com Providing Technology For The Technophobic Subprime Mortgage Industry

MortgageDaily.com November 2

The Future of Subprime Mortgage Lending

Is “Subprime Mortgage Technology” An Oxymoron?

MortgageDaily.com August 15

30-Year Fixed
Today's rates starting at
6.00%
â–² +0.02%
30 YEAR FIXED
15-Year Fixed
Today's rates starting at
5.43%
â–¼ -0.01%
15 YEAR FIXED
5/1 ARM
Today's rates starting at
5.97%
â–²
5/1 ARM
Home Equity
Today's rates starting at
6.75%
â–² +0.02%
HOME EQUITY
HELOC
Today's rates starting at
7.25%
—
HELOC
Updated: Mar 5, 2026 · Source: Freddie Mac / FRED
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