| State tells mortgage broker to halt
New York mortgage broker Vertical Lend Inc. forged borrowers' signatures, created false loan records, and charged fees that were never disclosed to customers, state regulators said yesterday as they ordered the company to stop selling mortgages in Massachusetts. Among the findings in a January audit of Vertical Lend by the Massachusetts Division of Banks was that one out of four borrowers sampled had paid, on average, nearly $2,000 -- and some as much as $6,445 -- in fees they were unaware of. Also yesterday, Massachusetts ordered SouthStar Funding LLC to halt operations after regulators learned the company is no longer funding some loans it had agreed to make, said David Cotney, the banking division's chief operating officer. That was the latest detail to emerge from the troubles roiling the subprime mortgage lending industry.
Fitch Rates $1.15B Soundview Home Loan Trust, Asset-Backed Ctfs ...
The 'AAA' rating on the senior certificates reflects the 19.65% total credit enhancement provided by the 3.40% class M-1, 3.10% class M-2, 1.85% class M-3, 1.65% class M-4, 1.50% class M-5, 1.45% class M-6, 1.40% class M-7, 1.10% class M-8, 0.85% class M-9, 1.00% class M-10 and 2.35% initial and target overcollateralization (OC). All certificates have the benefit of monthly excess cash flow to absorb losses. In addition, the ratings reflect the quality of the loans, the soundness of the legal and financial structures, and the capabilities of Countrywide Home Loans Servicing LP as servicer (rated 'RPS1' by Fitch) and Deutsche Bank Trust Company as Trustee. The certificates are supported by three collateral groups. Group I consists of mortgage loans with principal balances that conform to Fannie Mae and Freddie Mac guidelines.
125 per cent mortgage welcomed by consumer website
A leading consumer website has welcomed Alliance & Leicester's decision to launch a 125 per cent mortgage, saying that it will help first-time buyers get on the property ladder.Recently, Alliance & Leicester said that it would offer people a 125 per cent PlusMortgage, which combines a mortgage with an unsecured personal loan.While Citizens Advice Bureau and the National Debtline have criticised the lender for offering people a deal that means that are reduced to negative equity from the start, moneysupermarket.com has welcomed the move."I believe A&L is acting with full responsibility in bringing this product to market," said Louise Cuming, the head of mortgages at the price comparison website."It's not surprising to see another lender join the 100 per cent plus market when first-time buyers continue to find it increasingly tough to get a foot on the housing ladder."Ms Cuming explained that the deal was not encouraging people to take on more debt that was appropriate, as it will "be sold via brokers and therefore borrowers can only access [the mortgage deal] after a stringent advice process."She added: "A&L is only targeting people with the propensity to take on this large amount of debt – and, in fact, lenders have historically seen lower percentage arrears in the 100 per cent plus market versus the 95 per cent sector."A recent report from Nationwide suggested that first-time buyers now have to spend £120 a month more to pay for their mortgage than they did a year ago.
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