Subprime RMBS: Expected Credit Losses vs Mark to Market Losses – Expected credit losses on AAA tranches: ZERO … Mark to market losses so far on AAA tranches: around $ 175 bn … – thanks Susan Kulakowski  – Alea Blog 

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Powerpoint presentation:  this is good – IRA Presents at the Financial Services Roundtable 2008 Spring Meeting -  Click here    to download a copy of our presentation: “The Big Risks” A Look at 2008 and Beyond.” – Christopher Whalen – IRA News

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Update: Are Countrywide Financial Bond Holders Bankruptcy Remote? – Institutional Risk Analytics

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Financial Services Committee Approves FHA Housing and Homeowner Retention Act -  Legislation Now Moves for Consideration by the Full House – house.gov 

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A Workable Alternative for Federally Chartered Banks  – As states sign regulatory compacts, multi-state institutions can opt for state regulation rather than federal – Vernon W. Hill – bankstocks.com

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kinda slow – Freddie: No REMIC Issuance in May – Housing Wire 

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BoE says Marking to Market Overstates Subprime Losses – … In its latest Financial Stability Report (here) the Bank weighs in on the “overstating potential losses.   … – Research Recap 
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1. FASB on Subprime: “We Warned You” – The chairman of the accounting standards board notes that his staff sent up a warning flare about subprime mortgages in 2005. – Tim Reason – CFO.com

2.  Link to FASB SPO 94-6-1  

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Two Fatal Flaws in Fair Value – David Katz -  The credit crunch has revealed how tough it is put a price on downside risk when there’s no one around to buy it, say top insurance managers.
1.  the “myth” that all securities have a market and
2.  a tendency to overlook downside risk.   – CFO.com

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Fitch – Downgrades Likely Based on New Corporate CDO Criteria – … Fitch’s move follows a six-month review of its approach, which included a fundamental re-assessment of Fitch’s approach to corporate portfolio risk where each component of the rating approach was challenged and re-tested, leading to a number of important revisions. – Research Recap 

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D-Day for Washington Mutual – In February, WaMu’s top earners were being feted in the Bahamas. On Apr. 30, most of them are out of a job -  BusinessWeek 

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US Mortgage Rates Little Changed as Risk of Inflation Continues to Cause Concern – riskcenter.com 

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IRA ARTMAN SECTION – thanks Ira:

cool maps – IRA finds Experian data motherlode:
1.  Experian® Study Shows Severely Delinquent Mortgage Accounts Up 15 Percent in One Year – has dropdown by state 

2.  Enter your zip code to see how you compare ! >>>second link has score by zip code/state cool!
3.  Mouseover state
4.  View all graphs
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Subprime Mortgage Delinquency Rates – FRB San Francisco Working Paper 

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The Consequences of Mortgage Credit Expansion: Evidence from the 2007 Mortgage Default Crisis – NBER Working Paper No. 13936 

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Credit Tightening On Builder Loans Threatens To Prolong Housing Downturn – NAHB

posted by Bill Coppedge