The American Securitization Forum (ASF)1 is publishing this Statement as part of its continuing efforts to inform its members and promulgate relevant securitization industry guidance in light of the challenges currently confronting the subprime residential mortgage markets.
Current subprime residential mortgage market conditions include a number of concerns that impact securitization transactions, subprime mortgage finance and the overall housing market: an increase in delinquency, default and foreclosure rates; an increase in real estate owned inventories; a decline in home price appreciation; and a prevalence of loans with a relatively low introductory rate that are adjusting to a higher rate. This Statement is being published concurrently with our Streamlined Foreclosure and Loss Avoidance Framework for Securitized Subprime ARM Loans, Executive Summary, and provides additional background, detail and discussion supporting that document.
The ASF believes that minimizing foreclosures and preserving homeownership, wherever possible, is in the best interests of borrowers, servicers, originators and investors as foreclosure is typically the most costly and least-preferred method of resolving a defaulted mortgage loan. As such, the interests of secondary mortgage market participants continue to be aligned with borrowers, communities and policymakers to prevent foreclosures where possible.
