Maximum Value Group

This is an important article because it is detailing the possible exit from the mortgage business of another player that only dealt minorly in the subprime world, if at all.  One of the considerations not discussed in the article is the effect of the potential Economic Stimulus Plan specifically on conduits such as ResCap RFC.

Fannie Mae announced on December 5, 2007 that down payment requirements will be increased by 5 percentage points over the previously allowed minimum down payment in areas identified as declining.  While Fannie’s Desktop Underwriter (DU) will generate a message on loan casefiles when it appears that the property is in an area of declining home prices, Fannie also “strongly encourages” lenders...

This article is illustrating finger pointing looking for a villain, instead of "post-mortem" to find a hero.  What the industry needs is a clear plan for rebuilding the subprime securitization market.  In my opinion, a great part of that will be tied to the outsourced due diligence function, and the value those in that area add to the process.  One of the leading players in the...

The Economic Stimulus Act, approved today, will go along way towards its name, and stimulate the economy.  Questions of how much money, too whom, and what may have been sacrified in the cross-party negotiation will remain unanswered, but one thing is clear.  Congress has delivered a very potent set of stimulus to the mortgage markets.  By increasing the loan insuring (FHA) or purchasing...

This article is a very good brief about the RiskMetrics IPO, but doesn't attempt to broadly touch the many areas that are set to shine from recent events in the subprime mortgage market.