GLG News by Subprime Mortgage Experts (US)

Joseph SmithPresident and CEODefault Mitigation Management

Is the end in site? real estate issues

July 24, 2007

Analysis of:What Could Topple Bulls' 'Wall of Worry'? | online.wsj.com

The implication in the prior articles is that the issue is over with sub-prime. It is not, it just first manifested istelf there. The Alt A product is now showing higher delinquencies then forcasted. The bigger issue is the resets, number of loans (inventory) on the market and depreciating home values.

Maureen BoltonPrincipalGlobal Capital Access

Subprime Crisis? What Subprime Crisis?

June 4, 2007

Analysis of:Housing Boom 2.0 | money.cnn.com

Thanks to the recent increase in subprime mortgage delinquencies and defaults, the media has finally divulged three of the lesser known US mortgage industry practices. 1) Credit scores are not (or should not be) the sole factor in categorizing borrowers as “prime” or subprime”. 2)Brokers are compensated almost twice as much for bringing lenders subprime vs. subprime loans. This provides more than enough reason to put a borrower in the “subprime” camp, regardless of the qualification process. 3) Despite the deluge of information regarding mortgage products and interest rates that is made available to all of us via television, radio and newspaper ads-not to mention the internet, homebuyers most frequently rely solely on their realtor to assist them in obtaining a mortgage..

Maureen BoltonPrincipalGlobal Capital Access

CDS Investors Claim Conflict if Subprime Borrowers Are Offered Modifications.

June 1, 2007

Analysis of:Gazprom refuses help with Shtokman | search.ft.com

This FT article brings up an issue that most of those interested in the subprime mortgage sector have been discussing –modifications for borrowers who are willing but not able to pay their mortgages. Most of the discussion has focused on legal and tax issues –Can you modify a loan within a REMIC? Will doing so destroy true-sale status? But this article describes a new issue: CDS investors, (i.e. those taking a short position in specific subprime mbs deals) claiming that loan modifications will minimize losses in subprime rmbs and therefore negatively impact the value of their CDS. To make matters worse, the broker that sold them the CDS is the same broker that structured and sold the subprime rmbs. Do we have a conflict here?

Joseph ChathamPresidentChatham Mortgage Partners Inc.

Pay Option ARM's: A Ticking Time-bomb?

May 4, 2007

Analysis of:The Risk in Subprime | money.cnn.com

-There may be huge risk with Option ARM lenders
-Markets are vulnerable to bad Option ARM loans
-Option ARM's may be able to outlast real estate slump 

Maureen BoltonPrincipalGlobal Capital Access

Derivatives for Dummies

April 25, 2007

Analysis of:At the Risky End of Finance | www.economist.com

This article, published last week's Economist, is the first article purporting to explain the global credit derivative market that I have read which isn't full of algebraic formulas.

It is a cogent and clear primer on derivatives and would be helpful to investors, clients and portfolio managers who are not yet familiar with derivatives. 

In addition to explaining how derivatives are structured, their purpose in the fixed income markets and their past and probable impact on risk management, the article offers significant food for thought on whether derivatives will do their job (i.e. mitigate the impact of credit defaults) when the bond market tanks.

Joseph ChathamPresidentChatham Mortgage Partners Inc.

Loss Mitigation Efforts are Key to Foreclosure "Soft Landing"

April 2, 2007

Analysis of:Subprime Loan Servicers Step Up Loss Mitigation Efforts to Avoid Foreclosures | www2.standardandpoors.com

The Standard and Poors' article is the only article that I have seen that points out that there is, indeed, hope for the subprime forelosure world.

Loss Mitigation is a process too few understand and that all involved with the mortgage world should be acquainted with.

Loss Mitigation eforts will definitavely change the face of this "crisis"

Maureen BoltonPrincipalGlobal Capital Access

Foreclosure is Far From the Only Option

March 28, 2007

Analysis of:Subprime Loan Servicers Step Up Loss Mitigation Efforts to Avoid Foreclosures | www2.standardandpoors.com

This Standard & Poor's report, released March 14, 2007 provides both crucial information and comfort to investors in subprime mbs or subprime mortgage originators. 

In light of the recent media blitz about increased defaults in subprime mortgages, S&P contacted each major Servicer and "Special Servicer"  to gauge their preparedness for the deluge of defaults subprime mortgages are expected to experience.

A cogent summary, it provides an introduction and succinct explanation of loss mitigation, how it is implemented by the Servicer/Special Servicer and gives one an idea of how a few of the largest players plan to approach this anticipated problem. 

It is no surprise that Foreclosure is not at the top of any of the servicers' plans.  In addition to defining "Loss Mitigation," the report describes the economic and operational aspects of the various alternatives to foreclosures.

Maureen BoltonPrincipalGlobal Capital Access

Run For Cover

March 23, 2007

Analysis of:US Banks Move into Covered Bonds | www.efinancialnews.com

This article is important because it announces the willingness of US mortgage lenders, most of which are banks, to supplement their typical funding mechanism (i.e. mbs) to covered bonds. 

The article also provides a brief explanation of the covered bond structure and its authors indicate that several US banks are poised to follow WAMU and Bank of America and start their own covered bond programs.

Understanding the Covered Bond structure is crucial; If investors continue to avoid the US mortgage market;this funding mechanism will be adopted by more and more lenders.

Joseph ChathamPresidentChatham Mortgage Partners Inc.

Subprime Lending = Egalitarian Oppotunities

March 20, 2007

Analysis of:Some Subprime Woes Linked to Hodgepodge of Regulators | www.usatoday.com

1) Media impact on regulatory agencies
2) Misinformation regarding broker/lender culpability
3) Clarification of subprime benefits
4) The subprime implosion is way overblown

Maureen BoltonPrincipalGlobal Capital Access

Like it or Not, Subprime Loans Are Here To stay

March 13, 2007

Analysis of:New Century's Trials Are An Opportunity | www.forbes.com

This article is important because it contains a detailed and substantiated explanation of why the current problems with subprime lenders are an opportunity and why, despite the predicitions of just about every newspaper in the country, subprime loans are here to stay.

Previous Page : 12345678910Next61 to 70 of 91