Latest Issue of First American LoanPerformance MarketPulse Report Features Wachovia Study
—Study Explores Subprime Voluntary Prepayments in ABX Index Deals—
December 10, 2007, SAN FRANCISCO
First American LoanPerformance, a member of The First American Corporation (NYSE: FAF) family of companies and a leader in residential mortgage data and analytics for the mortgage industry and Wall Street, today announced that the latest issue of its MarketPulse report is available for download at www.loanperformance.com.
This latest report features a new whitepaper entitled, “Voluntary Prepayments in the ABX” by John McElravey, vice president, asset-backed securities (ABS) research for Wachovia Capital Markets, LLC. “The ABS market is focusing on the approaching resets of hybrid adjustable-rate mortgages (ARM) originated over the past two years. Many analysts are expecting subprime borrowers to have a difficult time refinancing in the current environment,” said McElravey. “However, we do see some constructive developments in the market, including a better-than-expected prepayment picture, a 50 basis point rate cut by the Federal Reserve and the introduction of the Federal Housing Administration’s FHASecure program. In the short run, though, the environment remains challenging for the subprime mortgage market,” added McElravey.
The MarketPulse report also summarizes a selection of key mortgage performance statistics through June 2007, including geographic markets with the highest percentage of nonconforming loans and the highest incidence of serious delinquency and prepayment rates for prime and subprime loans.
MarketPulse is a complimentary quarterly report that presents analysis of, and insight into, delinquency and prepayment trends for the prime, subprime, home equity and mortgage-backed and asset-backed securities markets. Each issue also contains a “RiskView” section with valuable insights from thought leaders on the prime, subprime and securities mortgage marketplace. The summary data in each issue of MarketPulse is extracted from First American LoanPerformance’s industry-leading mortgage servicing and securities databases. MarketPulse can be accessed by completing the electronic subscription form at www.loanperformance.com/marketpulse.
About First American LoanPerformance
First American LoanPerformance is a subsidiary of First American CoreLogic, Inc. and a member of The First American Corporation (NYSE: FAF) family of companies. First American LoanPerformance databases track the delinquency and prepayment performance of 50 million active individual mortgage payments per month and provide loan-level information on more than $2.2 trillion in nonagency mortgage-backed and asset-backed securities. The company’s data and suite of predictive prepayment and risk modeling solutions enable mortgage originators, servicers, securities issuers and investors to make informed business decisions about credit risk, loss mitigation, customer retention, securitization and investment. For additional information visit www.loanperformance.com and www.facorelogic.com.
About The First American Corporation
The First American Corporation (NYSE: FAF) is a FORTUNE 500® company that traces its history to 1889. With revenues of $8.5 billion in 2006, it is America’s largest provider of business information. First American combines advanced analytics with its vast data resources to supply businesses and consumers with valuable information products to support the major economic events of people’s lives, such as getting a job, renting an apartment, buying a car or house, securing a mortgage and opening or buying a business. The First American Family of Companies, many of which command leading market share positions in their respective industries, operate within five primary business segments, including: Title Insurance and Services, Specialty Insurance, Mortgage Information, Property Information and First Advantage. More information about the company and an archive of its press releases can be found at www.firstam.com.