Moody's

The credit rating company cited concerns over the lenders' reliance on uninsured deposit funding and unrealized losses in their asset portfolios. 

The meager increase suggests the largest boost in inventory possible would likely still leave the backlog of homes on the market at historic lows.

But existing deals are likely to experience issues resulting from higher defaults, faster prepayment speeds.

Bondholders could see principal losses if, due to the way the documents are worded, the rate is frozen at the last published amount.

The measures currently ensuring mortgage companies have sufficient cash to cover advances aren't necessarily sustainable, warns Ted Tozer, a senior fellow at the Milken Institute and a former government official.

The mortgage insurer is receiving $528 million of coverage in the event of defaults in a $44 billion loan pool.

Government-sponsored enterprise reform could be one hurdle to future innovation.

The company could be seeking a cash infusion to handle market difficulties ahead, but representatives are keeping mum on the matter.

The agency stated it’s concerned that securitization payment cash flow for the notes could be disrupted by deals’ stop-advance features that limit the period in which servicers must cover principal and interest payments on delinquent loans to MBS noteholders.

Mortgage lenders are preparing for the biggest wave of delinquencies in history. If the plan to buy time works, they may avert an even worse crisis: Mass foreclosures and mortgage market mayhem.