Overdues in CRISIL-rated
mortgage pools have historically remained below 1%.
Not so far in the future,
mortgage pools will have the same level of information, transparency and exchange speeds as stocks do today.
Along with increased appetite for performing
mortgage pools, PwC is seeing increased interest in bundles of performing corporate loans, particularly in the BB to B- risk families.
The VAR model interpreting the housing market in this paper will use housing starts to represent residential investment, the federal funds rate to represent monetary policy,
mortgage pools backed by government sponsored enterprises (GSE-backed
mortgage pools) to represent government influence on subprime lending, personal consumption expenditures as a proxy for demand, and a dummy variable accounting for changes in the regulatory environment in the mid-1990s that encouraged further subprime lending.
increased the risk in its portfolio by purchasing lower tranche MBS, which would absorb any losses in the
mortgage pools before the higher tranches and so had a higher risk and paid a higher yield."
The industry's bankruptcy is generally attributed to
mortgage pools (the website investorwords.com defines
mortgage pools as "a group of related financial instruments, such as mortgages, combined for resale to investors on a secondary market").
That's the only diversification you could really build in the
mortgage pools. Once you go to a CMO with different tranches and throwing all the revenue into a basket, it allowed diversification through the tranches.
Generally, entities that do not qualify as REMICs, but that issue multiple maturity debt obligations, the payments on which are related to payments on the mortgages and other obligations held by the entity, are classified as Taxable
Mortgage Pools (TMPs).
And in the coming weeks, we will announce other Recovery Act programs, including an expansion of our microloan program, a loan that uses the 504 loan program to refinance debt, and a guarantee program to stimulate sales of 504 first
mortgage pools in the secondary market.
mortgage pools in the sample were dominated by hybrid adjustable-rate
Were it not for the $156 billion increase in Agency and GSE-backed
mortgage pools, there would indeed have been a sizeable contraction in overall residential mortgage debt during Q2.
Add about $40 billion in defaults by borrowers who have conventional mortgages and
mortgage pools and the total loss may reach about $250 billion or less than 2% of total bank credit.
