The subprime default rate rose to 10.52% in January, up 40 basis points from that of December, and the foreclosure rate on securitized subprime loans hit 4.33%, according to researchers at the investment banking firm Friedman Billings Ramsey.The default rate increased from 6.83% in January 2006 to 10.12% in December, with a monthly surge of 101 bps in November. FBR managing director Michael Youngblood said he does not expect to see another similar urge. "We expect rather a slow upward drift of default rates to 10.97% by December 2007," he said. FBR defines defaults as loans 90 days or more past due, foreclosures, and real estate owned. The investment banking firm is based in Arlington, Va.
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Ohio-based Liberty Home Mortgage joins several companies who started using a more modernized FICO credit score for nonconforming mortgage originations recently.
6h ago -
The CFPB has dissolved the Office of Supervision, Enforcement and Fair Lending and eliminated the job of associate director in a move that impacts how it designates nonbanks for supervision.
7h ago -
The plan that the Federal Housing Finance Agency floated calls for Freddie Mac to actively invest in some new closed-end seconds as cash-out refinancing subsides.
10h ago -
The push comes amid what one expert highlighted as lax funding efforts for two Department of Housing and Urban Development grant programs.
April 17 -
Conventional lending drove volumes higher, particularly in the purchase market, the Mortgage Bankers Association said.
April 17 -
Net charge-offs at the Charlotte, North Carolina-based bank increased by more than 80% in the first quarter compared with a year earlier. BofA executives say that the rising losses were in line with the bank's risk appetite.
April 16