SEC Info℠ | Home | Search | My Interests | Help | Sign In | Please Sign In | ||||||||||||||||||||
As Of Filer Filing For·On·As Docs:Size Issuer Agent 11/06/06 Long Beach Securities Corp FWP 2:8.7M Long Beach Securities Corp Kelly Cecelia Anne/FA |
Document/Exhibit Description Pages Size 1: FWP Free Writing Prospectus HTML 990K 2: FWP Free Writing Prospectus -- fwpnovember2006 PDF 876K
Click here for a printer-friendly version of this document
Slide 1
Subprime Mortgage Program
November 2006
Slide 2
Free Writing Prospectus
The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you so request.
Forward-Looking Statement
This presentation contains forward-looking statements, which are not historical facts and pertain to future operating results. These forward-looking statements are within the meaning of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about our plans, objectives, expectations and intentions and other statements contained in this document that are not historical facts. When used in this
presentation, the words “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” or words of similar meaning, or future or conditional verbs, such as
“will,” “would,” “should,” “could,” or “may” are generally intended to identify forward-looking statements. These forward-looking statements are inherently subject to significant business, economic and
competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Actual results may differ
materially from the results discussed in these forward-looking statements for the reasons, among others, discussed under the heading “Factors That May Affect Future Results” in Washington Mutual’s 2005 Annual Report on Form 10-K/A and
“Cautionary Statements” in our Form 10-Q/A for the quarter ended March 31, 2006 and Form 10-Q for the quarter ended June 30, 2006 which include:
– general business and economic
conditions, including movements in interest rates, the slope of the yield curve, and the overextension of housing prices in certain geographic markets;
– rising interest rates, unemployment and
decreases in housing prices impact credit performance;
– risks related to the option
adjustable-rate mortgage product;
– risks related to subprime
lending;
– risks related to credit card
operations;
– changes in the regulation of financial
services companies, housing government-sponsored enterprises and credit card lenders;
– competition from banking and nonbanking
companies; and
– negative public opinion impacts the
company’s reputation.
There are other factors not described in our 2005 Form 10-K/A and 2006 Forms 10-Q and which are beyond the Company’s ability to anticipate or control that could cause results to differ.
Slide 3
Index
Page |
Page |
||||
1 |
- |
Cover |
21 |
- |
Documentation trends |
2 |
- |
Forward looking statement |
22 |
- |
Loan purpose trends |
3 |
- |
Index |
23 |
- |
Occupancy trends |
4 |
- |
Subprime Mortgage Overview |
24 |
- |
Appraisal review |
5 |
- |
Subprime business expansion |
25 |
- |
Appraisal reviews by appraiser |
6 |
- |
Mortgage business realignment |
26 |
- |
Consumer compliance |
7 |
- |
Organization Chart |
27 |
- |
Subprime Mortgage Conduit Overview |
8 |
- |
Management experience |
28 |
- |
Conduit strategy |
9 |
- |
Long Beach Mortgage Overview |
29 |
- |
Risk management- sellers |
10 |
- |
Historical timeline |
30 |
- |
Risk management - mortgages |
11 |
- |
Map of loan fulfillment centers |
31 |
- |
Collateral profile |
12 |
- |
Production trend |
32 |
- |
Subprime Servicing Overview |
13 |
- |
Changes in credit standards |
33 |
- |
Default management organization chart |
14 |
- |
2004 shift in credit quality |
34 |
- |
Servicing management experience |
15 |
- |
Serious delinquent trends |
35 |
- |
Servicer ratings |
16 |
- |
Piggyback perfromance trends |
36 |
- |
Recent improvements |
17 |
- |
FICO distribution trends |
37 |
- |
Impact of improvements |
18 |
- |
FICO distribution trends |
38 |
- |
Washington Mutual Overview |
19 |
- |
Piggyback trends |
44 |
- |
Contacts |
20 |
- |
Piggyback stated income trends |
Slide 4
Subprime Mortgage Program Overview
Slide 5
WaMu is focusing on higher margin products
WaMu is committed to residential mortgage lending across the entire credit spectrum
Improve profitability by expanding into higher-margin products offering a favorable risk/return profile
–
Long Beach Mortgage (broker-sourced
subprime mortgage lender)
–
Subprime mortgage conduit (flow and
bulk purchases)
–
Alt-A mortgage conduit
expansion
–
Mortgage Banker Finance expansion
(mortgage warehouse lending)
Leverage existing expertise and infrastructure to improve efficiency
–
Subprime mortgage acquisition
platform:Since 1999, WaMu has purchased $44 billion ($14 billion outstanding as of Aug. 2006) in subprime mortgages from third-parties
–
Infrastructure:Credit, compliance, capital markets, legal infrastructure already in place to serve needs of Long Beach Mortgage
–
Above average servicing
platform:$45 billion in subprime mortgages serviced at September 30, 2006 on a platform that is highly rated by rating agencies
All residential lending channels integrated into the Home Loans division in 2006
Long Beach Mortgage previously under the Commercial division
Capital markets realignment due to integration of residential lending channels
All subprime mortgage capital markets activities, including Long Beach Mortgage, under the direction of one manager
Evaluation of best execution the same no matter which channel sources the loan
Subprime execution distinct from other product types
Subprime servicing default management fully integrated into WaMu servicing management structure
Upon integrating Long Beach Mortgage into Home Loans, default management for the Long Beach Mortgage portfolio also moved into Home Loans;
Home Loans Default Management has its own default group;
Both the Head of Servicing and the National Default Manager’s careers based in subprime servicing
Slide 7
WaMu Subprime Organization Kerry Killinger Chairman and CEO Steve Rotella President & COO David Schneider President, Home Loans Ron Cathcart EVP, Enterprise Risk Officer Arlene Hyde Division ExecutivePrime and Nonprime Wholesale Lending David Beck Division Executive Capital Markets John Berens Division Executive Servicing Cheryl Feltgen Division Executive Chief Risk Officer Production Operations Doug Potolsky SVP, Subprime Mortgage Capital Markets Steve Champney SVP, National Default Manager Alex Park SVP, Senior Credit Ofiicer - Subprime Appraisal Review Compliance Long Beach Mortgage Subprime Conduit Specialty Mortgage Finance Prime Subprime
Slide 8
Seasoned Management Team
Executive |
Division |
Title |
Joined WaMu |
Total Relevant Experience |
Previous Employer |
|
Doug Potolsky |
Subprime Capital Markets |
SVP Capital Markets |
2006 |
25 years |
JP Morgan Chase |
|
Susan Sinn |
Long Beach Mortgage |
Wholesale Nonprime Operations Manager |
2006 |
25 years |
JP Morgan Chase |
|
Dennis Lau |
Specialty Mortgage Finance |
FVP |
1987 |
19 years |
Washington Mutual |
|
Jay Weisbrod |
Long Beach Mortgage |
Wholesale Production Manager |
1994* |
16 years |
Beneficial |
|
Dave Coultas |
Long Beach Mortgage |
FVP Capital Markets |
2004 |
13 years |
Washington Mutual |
|
Alex Park |
Credit Policy |
Senior Credit Officer |
2006 |
14 years |
Fremont |
|
John Berens |
Servicing |
SVP, Servicing |
2005 |
24 years |
JP Morgan Chase |
|
Steve Champney |
Servicing |
SVP, Default Manager |
2005 |
20 years |
JP Morgan Chase |
|
* joined Long Beach Bank, F.S.B. |
Slide 9
Long Beach Mortgage
a division of Washington Mutual Bank
Slide 10
The Subprime Mortgage Industry’s Most Experienced Broker-Sourced Lender
The Subprime Mortgage Industry’s Most Experienced Broker-Sourced Lender
1988 Long Beach, fsb establishes Broker-Sourced operation
1994 Broker-sourced operations expands outside California
1996 Origination volume exceeds $1 billion in 43 states
1997 Broker-sourced division sold to newly formed public company*
1999 Long Beach Mortgage Company acquired by WaMu
2004 New Strategy Implemented
2006 Long Beach Mortgage became division of WMB
* New companies commence business as Long Beach Financial Corp and Long Beach Mortgage Company, respectively
Slide 11
Loan Fulfillment Centers are Strategically Located in Key Markets
Q2 2006 Top 10 states by dollar volume with average FICO (1st liens only)
Mississippi – N/A
CA |
39.0% |
FL |
10.4% |
TX |
5.5% |
IL |
4.4% |
NJ |
4.2% |
WA |
4.1% |
MD |
4.0% |
NY |
3.1% |
VA |
2.5% |
AZ |
2.2% |
Other |
20.7% |
100.0% |
Slide 12
Long Beach Mortgage* Annual Origination Volume
1998 |
2.6 |
1999 |
3.2 |
2000 |
3.9 |
2001 |
5.5 |
2002 |
8.5 |
2003 |
11.497 |
2004 |
16.175 |
2005 |
29.781 |
2006 H1 |
11.092 |
* Subprime mortgage broker channel
Slide 13
Improving credit standards since 2004
Jan 2004 → Disallowed < 500 FICO primary borrowers
→ Ceased lending on
manufactured housing
Jun 2005 → Eliminated “D” credit eligibility
Dec 2005 → Raised minimum FICO from 575 to 600 on piggyback loans
Mar 2006 → Lowered maximum LTV for Full Doc “C” borrowers
→ Established minimum
FICO score for Non-owner Occupied loans
→ Disallowed private
party 2nd liens for Non-owner Occupied loans
→ Implemented DISSCO
screening for all loan submissions to minimize fraud related to
incorrect applicant information and property
overvaluation
Apr 2006 → Increased minimum Net Disposable Income requirements
→ Reintroduced
bankruptcy seasoning requirements
→ Eliminated stated
income wage earner loans for First Time Homebuyers
May 2006 → Raised piggyback stated income FICO score minimum to 620
→ Established
additional guidelines for First Time Homebuyers
Owner-occupied only
Property type 1-2 units only
Maximum combined loan amount $750k
Non-financial institutions 2nd lien loans disallowed for LTV/CLTV ≥ 95%
Debt-to-income ratio maximum 50%
2 months reserves (PITI) required on stated income loans with LTV/CLTV > 80%
Bankruptcy seasoning ≥ 36 months
Payment shock maximum 200% on PITI
Oct 2006 Raised minimum credit history standard for high CLTV loans
Slide 14
A Major Shift in Characteristics in 2004
FICO < 500 (left axis) |
AVG FICO (right axis) |
Manufactured Housing |
|
ABS 2000-LB1 |
13.2% |
568.59 |
0.0571 |
LBMLT 2001-1 |
16.9% |
561.92 |
0.069 |
LBMLT 2001-2 |
14.2% |
570.52 |
0.0605 |
LBMLT 2001-3 |
12.2% |
576.11 |
0.0571 |
LBMLT 2001-4 |
16.0% |
567.39 |
0.054 |
LBMLT 2002-1 |
13.4% |
588.02 |
0.0396 |
LBMLT 2002-2 |
16.3% |
580.19 |
0.0414 |
LBMLT 2002-3 |
14.2% |
589.31 |
0.0402 |
LBMLT 2002-4 |
9.3% |
602.52 |
0.0369 |
LBMLT 2002-5 |
9.2% |
611.61 |
0.0285 |
LBMLT 2003-1 |
7.2% |
628.02 |
0.0248 |
LBMLT 2003-2 |
11.0% |
603.17 |
0.03 |
FNMA 2003-W5 |
0.2% |
661.19 |
0.0309 |
LBMLT 2003-3 |
10.5% |
604.82 |
0.0305 |
FNMA 2003-W9 |
0.2% |
666.63 |
0.0303 |
LBMLT 2003-4 |
3.8% |
635.12 |
0.0339 |
LBMLT 2004-1 |
2.2% |
643.17 |
0 |
LBMLT 2004-2 |
0.7% |
635.8 |
0 |
LBMLT 2004-3 |
0.5% |
637.47 |
0 |
LBMLT 2004-4 |
0.2% |
640.99 |
0 |
LBMLT 2004-5 |
0.1% |
642.19 |
0 |
LBMLT 2004-6 |
0.1% |
636.4 |
0 |
LBMLT 2005-1 |
0.1% |
632.8 |
0 |
LBMLT 2005-2 |
0.1% |
635.68 |
0 |
LBMLT 2005-WL1 |
0.1% |
632.81 |
0 |
LBMLT 2005-WL2 |
0.2% |
630.36 |
0 |
LBMLT 2005-3 |
0.0% |
654.85 |
0 |
LBMLT 2005-WL3 |
0.0% |
641.00 |
0 |
LBMLT 2006-WL1 |
0.0% |
639.31 |
0 |
LBMLT 2006-1 |
0.0% |
632.83 |
0 |
LBMLT 2006-WL2 |
0.08% |
637.00 |
0 |
LBMLT 2006-WL3 |
0.13% |
636.00 |
0 |
LBMLT 2006-2 |
0.18% |
632.00 |
0 |
LBMLT 2006-3 |
0.24% |
634.00 |
0 |
LBMLT 2006-4 |
0.19% |
635.00 |
0 |
LBMLT 2006-5 |
0.16% |
631.00 |
0 |
LBMLT 2006-6 |
0.00% |
639.00 |
0 |
LBMLT 2006-7 |
0.00% |
638.00 |
0 |
LBMLT 2006-8 |
0.00% |
639.00 |
0 |
FICO < 500 (left axis) |
AVG FICO (right axis) |
Manufactured Housing |
|
ABS 2000-LB1 |
13.2% |
568.59 |
0.0571 |
LBMLT 2001-1 |
16.9% |
561.92 |
0.069 |
LBMLT 2001-2 |
14.2% |
570.52 |
0.0605 |
LBMLT 2001-3 |
12.2% |
576.11 |
0.0571 |
LBMLT 2001-4 |
16.0% |
567.39 |
0.054 |
LBMLT 2002-1 |
13.4% |
588.02 |
0.0396 |
LBMLT 2002-2 |
16.3% |
580.19 |
0.0414 |
LBMLT 2002-3 |
14.2% |
589.31 |
0.0402 |
LBMLT 2002-4 |
9.3% |
602.52 |
0.0369 |
LBMLT 2002-5 |
9.2% |
611.61 |
0.0285 |
LBMLT 2003-1 |
7.2% |
628.02 |
0.0248 |
LBMLT 2003-2 |
11.0% |
603.17 |
0.03 |
FNMA 2003-W5 |
0.2% |
661.19 |
0.0309 |
LBMLT 2003-3 |
10.5% |
604.82 |
0.0305 |
FNMA 2003-W9 |
0.2% |
666.63 |
0.0303 |
LBMLT 2003-4 |
3.8% |
635.12 |
0.0339 |
LBMLT 2004-1 |
2.2% |
643.17 |
0 |
LBMLT 2004-2 |
0.7% |
635.8 |
0 |
LBMLT 2004-3 |
0.5% |
637.47 |
0 |
LBMLT 2004-4 |
0.2% |
640.99 |
0 |
LBMLT 2004-5 |
0.1% |
642.19 |
0 |
LBMLT 2004-6 |
0.1% |
636.4 |
0 |
LBMLT 2005-1 |
0.1% |
632.8 |
0 |
LBMLT 2005-2 |
0.1% |
635.68 |
0 |
LBMLT 2005-WL1 |
0.1% |
632.81 |
0 |
LBMLT 2005-WL2 |
0.2% |
630.36 |
0 |
LBMLT 2005-3 |
0.0% |
654.85 |
0 |
LBMLT 2005-WL3 |
0.0% |
641.00 |
0 |
LBMLT 2006-WL1 |
0.0% |
639.31 |
0 |
LBMLT 2006-1 |
0.0% |
632.83 |
0 |
LBMLT 2006-WL2 |
0.08% |
637.00 |
0 |
LBMLT 2006-WL3 |
0.13% |
636.00 |
0 |
LBMLT 2006-2 |
0.18% |
632.00 |
0 |
LBMLT 2006-3 |
0.24% |
634.00 |
0 |
LBMLT 2006-4 |
0.19% |
635.00 |
0 |
LBMLT 2006-5 |
0.16% |
631.00 |
0 |
LBMLT 2006-6 |
0.00% |
639.00 |
0 |
LBMLT 2006-7 |
0.00% |
638.00 |
0 |
LBMLT 2006-8 |
0.00% |
639.00 |
0 |
Slide 15
Proactive response to negative industry trends
Subprime performance has deteriorated in 2006 more for Long Beach than the industry
Management actions have been effective in reducing these and other high-risk loan types
90+ Delinquencies (MBA) at 6 months seasoning
Securitized 1st Lien ARMs
Originated January - June
2003 |
2004 |
2005 |
2006 |
|
Industry |
1.23% |
1.23% |
1.76% |
3.19% |
Long Beach |
1.88% |
0.80% |
1.74% |
4.64% |
90+ Delinquencies (MBA) at 6 months seasoning
Securitized 1st Lien ARMs
Originated January - June
Purchase Money, LTV 75.1% - 80%
2004 |
2005 |
2006 |
1.18% |
1.78% |
4.81% |
0.92% |
1.95% |
5.09% |
Securitized 1st Lien ARMs
Originated January to June
Purchase Money Loans, LTV 75.1% - 80%
2003 |
2004 |
2005 |
2006 |
|
Industry |
14.4% |
18.9% |
27.5% |
28.4% |
Long Beach |
30.5% |
43.6% |
46.3% |
48.6% |
1st liens with Simultaneous 2nd liens
PB % |
|
2006-1 |
53.6% |
2006-2 |
52.5% |
2006-3 |
53.1% |
2006-4 |
61.1% |
2006-5 |
43.7% |
2006-6 |
48.3% |
2006-7 |
46.2% |
2006-8 |
44.7% |
2006-9 |
41.8% |
2006-10 |
36.70% |
Slide 16
Historical performance of Piggyback 1st Liens compared to Stand-alone 1sts with 80% LTV
lifetime Cumulative Default
80% Loan-to-value Ratio
LBMLT 2005-WL1 |
0.46% |
0.07% |
28.55% |
46.83% |
18.28% |
0.13% |
0.03% |
LBMLT 2005-WL2 |
0.16% |
0.10% |
27.89% |
52.25% |
24.36% |
0.04% |
0.05% |
Lifetime Severity
80% Loan-to-value Ratio
total |
||||||||
Default PB |
Default Non-PB |
Severity PB |
Severity Non-PB |
Diff |
Loss PB |
Loss Non-PB |
||
LBMLT 2003-1 |
2.30% |
2.71% |
18.73% |
48.40% |
29.67% |
0.43% |
1.31% |
|
LBMLT 2003-2 |
5.70% |
4.67% |
22.02% |
48.16% |
26.14% |
1.26% |
2.25% |
|
LBMLT 2003-3 |
5.18% |
3.96% |
27.62% |
50.67% |
23.05% |
1.43% |
2.01% |
|
LBMLT 2003-4 |
1.81% |
2.16% |
26.04% |
45.53% |
19.49% |
0.47% |
0.98% |
|
LBMLT 2004-1 |
1.71% |
1.44% |
21.18% |
41.80% |
20.62% |
0.36% |
0.60% |
|
LBMLT 2004-2 |
1.68% |
1.71% |
25.49% |
40.64% |
15.15% |
0.43% |
0.69% |
|
LBMLT 2004-3 |
1.12% |
1.14% |
33.13% |
46.83% |
13.71% |
0.37% |
0.53% |
|
LBMLT 2004-4 |
1.37% |
1.43% |
21.84% |
33.44% |
11.61% |
0.30% |
0.48% |
|
LBMLT 2004-5 |
1.14% |
0.32% |
18.99% |
43.33% |
24.34% |
0.22% |
0.14% |
|
LBMLT 2004-6 |
0.88% |
0.71% |
18.79% |
45.73% |
26.94% |
0.16% |
0.32% |
|
LBMLT 2005-1 |
1.14% |
0.80% |
24.05% |
47.50% |
23.45% |
0.27% |
0.38% |
|
LBMLT 2005-2 |
0.96% |
0.27% |
32.93% |
48.14% |
15.21% |
0.32% |
0.13% |
|
LBMLT 2005-WL1 |
0.46% |
0.07% |
28.55% |
46.83% |
18.28% |
0.13% |
0.03% |
|
LBMLT 2005-WL2 |
0.16% |
0.10% |
27.89% |
52.25% |
24.36% |
0.04% |
0.05% |
Lifetime Cumulative Loss
80% Loan-to-value Ratio
total |
||||||||
Default PB |
Default Non-PB |
Severity PB |
Severity Non-PB |
Diff |
Loss PB |
Loss Non-PB |
||
LBMLT 2003-1 |
2.30% |
2.71% |
18.73% |
48.40% |
29.67% |
0.43% |
1.31% |
|
LBMLT 2003-2 |
5.70% |
4.67% |
22.02% |
48.16% |
26.14% |
1.26% |
2.25% |
|
LBMLT 2003-3 |
5.18% |
3.96% |
27.62% |
50.67% |
23.05% |
1.43% |
2.01% |
|
LBMLT 2003-4 |
1.81% |
2.16% |
26.04% |
45.53% |
19.49% |
0.47% |
0.98% |
|
LBMLT 2004-1 |
1.71% |
1.44% |
21.18% |
41.80% |
20.62% |
0.36% |
0.60% |
|
LBMLT 2004-2 |
1.68% |
1.71% |
25.49% |
40.64% |
15.15% |
0.43% |
0.69% |
|
LBMLT 2004-3 |
1.12% |
1.14% |
33.13% |
46.83% |
13.71% |
0.37% |
0.53% |
|
LBMLT 2004-4 |
1.37% |
1.43% |
21.84% |
33.44% |
11.61% |
0.30% |
0.48% |
|
LBMLT 2004-5 |
1.14% |
0.32% |
18.99% |
43.33% |
24.34% |
0.22% |
0.14% |
|
LBMLT 2004-6 |
0.88% |
0.71% |
18.79% |
45.73% |
26.94% |
0.16% |
0.32% |
|
LBMLT 2005-1 |
1.14% |
0.80% |
24.05% |
47.50% |
23.45% |
0.27% |
0.38% |
|
LBMLT 2005-2 |
0.96% |
0.27% |
32.93% |
48.14% |
15.21% |
0.32% |
0.13% |
|
LBMLT 2005-WL1 |
0.46% |
0.07% |
28.55% |
46.83% |
18.28% |
0.13% |
0.03% |
|
LBMLT 2005-WL2 |
0.16% |
0.10% |
27.89% |
52.25% |
24.36% |
0.04% |
0.05% |
Slide 17
Impact of credit changes on FICO distribution
Fewer sub-600 FICOs
More FICOs 600 to 650
Average FICO Score and % FICO < 600 - 1sts
Dec-04 |
Jan-05 |
Feb-05 |
Mar-05 |
Apr-05 |
May-05 |
Jun-05 |
Jul-05 |
Aug-05 |
Sep-05 |
Oct-05 |
Nov-05 |
Dec-05 |
Jan-06 |
Feb-06 |
Mar-06 |
Apr-06 |
May-06 |
Jun-06 |
Jul-06 |
Aug-06 |
|
% < 600 - 1sts |
30.41% |
30.58% |
32.00% |
30.14% |
26.69% |
26.61% |
26.11% |
26.55% |
26.75% |
26.49% |
26.27% |
27.51% |
25.17% |
26.19% |
23.92% |
23.02% |
21.45% |
21.72% |
20.88% |
20.37% |
19.24% |
FICO - 1sts < 600 |
564.00 |
563.00 |
563.00 |
564.00 |
562.00 |
564.00 |
563.00 |
564.00 |
561.00 |
564.00 |
563.00 |
563.00 |
559.00 |
558.00 |
555.00 |
558.00 |
557.00 |
560.00 |
558.00 |
557.00 |
558.00 |
Average FICO Score and % FICO 600 - 650 - 1sts
Dec-04 |
Jan-05 |
Feb-05 |
Mar-05 |
Apr-05 |
May-05 |
Jun-05 |
Jul-05 |
Aug-05 |
Sep-05 |
Oct-05 |
Nov-05 |
Dec-05 |
Jan-06 |
Feb-06 |
Mar-06 |
Apr-06 |
May-06 |
Jun-06 |
Jul-06 |
Aug-06 |
|
% 600 - 650 - 1sts |
35.12% |
34.81% |
34.85% |
35.34% |
34.96% |
34.58% |
35.48% |
35.38% |
34.97% |
34.58% |
36.18% |
36.56% |
37.31% |
39.87% |
40.73% |
42.54% |
43.95% |
42.48% |
43.74% |
41.08% |
43.37% |
FICO - 1sts 600-650 |
626.00 |
625.00 |
626.00 |
626.00 |
626.00 |
626.00 |
626.00 |
626.00 |
626.00 |
627.00 |
626.00 |
625.00 |
626.00 |
626.00 |
627.00 |
626.00 |
626.00 |
626.00 |
626.00 |
627.00 |
626.00 |
|
|
|
|
|
|
|
|
24.16% |
24.08% |
24.49% |
27.64% |
20.34% |
19.56% |
18.39% |
18.53% |
20.22% |
19.20% |
21.20% |
18.81% |
20.98% |
Average FICO Score and % FICO > 650 - 1sts
Dec-04 |
Jan-05 |
Feb-05 |
Mar-05 |
Apr-05 |
May-05 |
Jun-05 |
Jul-05 |
Aug-05 |
Sep-05 |
Oct-05 |
Nov-05 |
Dec-05 |
Jan-06 |
Feb-06 |
Mar-06 |
Apr-06 |
May-06 |
Jun-06 |
Jul-06 |
Aug-06 |
|
% > 650 - 1sts |
34.46% |
34.61% |
33.15% |
34.52% |
38.34% |
38.81% |
38.41% |
38.07% |
38.29% |
38.94% |
37.55% |
35.93% |
37.52% |
33.94% |
35.36% |
34.44% |
34.60% |
35.80% |
35.37% |
38.56% |
37.39% |
FICO - 1sts > 650 |
692.00 |
691.00 |
691.00 |
693.00 |
694.00 |
694.00 |
694.00 |
694.00 |
695.00 |
694.00 |
693.00 |
692.00 |
692.00 |
692.00 |
691.00 |
689.00 |
689.00 |
692.00 |
691.00 |
693.00 |
693.00 |
Slide 18
Improved FICO characteristics
Improving Average FICO on 1sts
Average FICO Score
Dec-04 |
Jan-05 |
Feb-05 |
Mar-05 |
Apr-05 |
May-05 |
Jun-05 |
Jul-05 |
Aug-05 |
Sep-05 |
Oct-05 |
Nov-05 |
Dec-05 |
Jan-06 |
Feb-06 |
Mar-06 |
Apr-06 |
May-06 |
Jun-06 |
Jul-06 |
Aug-06 |
||
FICO - 1sts |
635.80 |
629.10 |
627.30 |
630.10 |
634.80 |
636.00 |
635.80 |
635.70 |
635.10 |
638.20 |
634.60 |
632.00 |
633.90 |
630.50 |
632.30 |
632.20 |
633.00 |
635.00 |
635.00 |
638.00 |
638.00 |
|
FICO - 2nds |
657.50 |
653.60 |
652.30 |
652.90 |
656.00 |
657.20 |
657.50 |
656.10 |
658.50 |
659.90 |
656.40 |
653.10 |
659.70 |
659.40 |
659.50 |
658.20 |
657.00 |
660.00 |
657.00 |
660.00 |
657.00 |
And a tighter FICO distribution
FICO Distribution
December 2004 |
January 2006 |
August 2006 |
|
< 600 |
30.41% |
26.19% |
19.24% |
600 - 650 |
35.12% |
39.87% |
43.37% |
> 650 |
34.46% |
33.94% |
37.39% |
Slide 19
Improvements in collateral mix
Fewer piggyback loans
% of 1sts with a Simultaneous 2nd
and Average FICO Score
May-06 |
Jun-06 |
Jul-06 |
Aug-06 |
|
50.52% |
47.37% |
46.62% |
45.12% |
|
660.00 |
657.00 |
660.00 |
657.00 |
% of 1sts without a Simultaneous 2nd
and Average FICO Score
Mar-06 |
Apr-06 |
May-06 |
Jun-06 |
Jul-06 |
Aug-06 |
50.02% |
49.25% |
49.48% |
52.63% |
53.38% |
54.88% |
606.22 |
608.27 |
609.48 |
615.20 |
618.79 |
622.38 |
Slide 20
A Shift Away from Piggyback Stated Income
Change in Volume – Piggyback
Dec-04 |
Jan-05 |
Feb-05 |
Mar-05 |
Apr-05 |
May-05 |
Jun-05 |
Jul-05 |
Aug-05 |
Sep-05 |
Oct-05 |
Nov-05 |
Dec-05 |
Jan-06 |
Feb-06 |
Mar-06 |
Apr-06 |
May-06 |
Jun-06 |
Jul-06 |
Aug-06 |
||
Piggyback 1st Volume |
100% |
82% |
77% |
112% |
122% |
142% |
161% |
131% |
157% |
142% |
135% |
126% |
117% |
89% |
102% |
117% |
92% |
94% |
81% |
68% |
84% |
|
Piggyback 1st Volume - Stated |
100% |
87% |
82% |
122% |
137% |
167% |
194% |
157% |
189% |
169% |
158% |
141% |
150% |
116% |
131% |
139% |
103% |
98% |
82% |
69% |
86% |
|
All Other 1sts |
100% |
83% |
78% |
102% |
102% |
108% |
120% |
105% |
127% |
106% |
102% |
93% |
81% |
71% |
77% |
91% |
72% |
75% |
72% |
62% |
79% |
|
Non-piggyback 1sts |
100% |
86% |
81% |
102% |
100% |
105% |
117% |
105% |
129% |
104% |
98% |
87% |
81% |
74% |
79% |
90% |
68% |
70% |
69% |
60% |
78% |
Change in Volume - Piggyback Stated Income
Dec-04 |
Jan-05 |
Feb-05 |
Mar-05 |
Apr-05 |
May-05 |
Jun-05 |
Jul-05 |
Aug-05 |
Sep-05 |
Oct-05 |
Nov-05 |
Dec-05 |
Jan-06 |
Feb-06 |
Mar-06 |
Apr-06 |
May-06 |
Jun-06 |
Jul-06 |
Aug-06 |
||
Piggyback 1st Volume |
100% |
82% |
77% |
112% |
122% |
142% |
161% |
131% |
157% |
142% |
135% |
126% |
117% |
89% |
102% |
117% |
92% |
94% |
81% |
68% |
84% |
|
Piggyback 1st Volume - Stated |
100% |
87% |
82% |
122% |
137% |
167% |
194% |
157% |
189% |
169% |
158% |
141% |
150% |
116% |
131% |
139% |
103% |
98% |
82% |
69% |
86% |
|
All Other 1sts |
100% |
83% |
78% |
102% |
102% |
108% |
120% |
105% |
127% |
106% |
102% |
93% |
81% |
71% |
77% |
91% |
72% |
75% |
72% |
62% |
79% |
|
Non-piggyback 1sts |
100% |
86% |
81% |
102% |
100% |
105% |
117% |
105% |
129% |
104% |
98% |
87% |
81% |
74% |
79% |
90% |
68% |
70% |
69% |
60% |
78% |
Note: base = Dec 2004 monthly origination volume; piggyback = 1st lien loan having a 2nd lien loan originated simultaneously
Slide 21
Higher Average FICOs and more Full Docs
Full Doc 1sts % and FICO Score
Dec-04 |
Jan-05 |
Feb-05 |
Mar-05 |
Apr-05 |
May-05 |
Jun-05 |
Jul-05 |
Aug-05 |
Sep-05 |
Oct-05 |
Nov-05 |
Dec-05 |
Jan-06 |
Feb-06 |
Mar-06 |
Apr-06 |
May-06 |
Jun-06 |
Jul-06 |
Aug-06 |
|
Full Doc - 1sts |
55.47% |
52.69% |
53.44% |
51.73% |
49.96% |
48.04% |
46.58% |
46.81% |
46.58% |
47.21% |
47.45% |
48.23% |
43.20% |
43.11% |
42.87% |
46.70% |
47.80% |
52.47% |
53.25% |
53.35% |
52.13% |
FICO Full Doc - 1sts |
612.20 |
610.10 |
606.20 |
607.80 |
612.40 |
612.80 |
611.00 |
611.30 |
612.10 |
616.80 |
612.20 |
611.00 |
609.00 |
608.70 |
611.10 |
613.70 |
617.00 |
621.00 |
622.00 |
627.00 |
628.00 |
Full Doc - 2nds |
46.96% |
43.96% |
43.64% |
42.24% |
40.47% |
38.12% |
36.26% |
37.12% |
35.93% |
36.03% |
37.13% |
39.10% |
30.55% |
29.78% |
31.09% |
35.26% |
38.38% |
40.93% |
42.31% |
42.08% |
42.07% |
FICO Full Doc - 2nds |
635.50 |
634.60 |
631.20 |
629.70 |
633.30 |
633.80 |
631.20 |
631.10 |
634.50 |
635.80 |
633.00 |
630.20 |
640.10 |
645.60 |
643.50 |
644.70 |
646.00 |
650.00 |
647.00 |
651.00 |
648.00 |
Stated - 1sts |
42.31% |
45.01% |
44.02% |
45.78% |
47.75% |
49.69% |
50.79% |
50.71% |
50.53% |
49.38% |
49.27% |
47.72% |
52.62% |
52.59% |
53.16% |
49.41% |
47.77% |
42.80% |
41.54% |
41.40% |
42.54% |
FICO Stated - 1sts |
653.80 |
652.30 |
653.80 |
656.30 |
659.50 |
659.60 |
660.00 |
659.00 |
657.50 |
660.30 |
657.30 |
655.00 |
655.40 |
649.30 |
650.90 |
649.90 |
650.00 |
654.00 |
652.00 |
653.00 |
652.00 |
Stated - 2nds |
50.70% |
53.85% |
53.94% |
55.29% |
57.34% |
59.45% |
60.96% |
60.46% |
61.24% |
60.53% |
59.28% |
56.82% |
65.34% |
65.47% |
65.28% |
60.28% |
56.63% |
53.08% |
51.21% |
51.16% |
51.87% |
FICO Stated - 2nds |
671.20 |
670.30 |
670.30 |
671.90 |
673.00 |
673.30 |
674.30 |
672.60 |
673.80 |
675.90 |
672.20 |
670.40 |
670.20 |
666.50 |
668.00 |
666.10 |
665.00 |
670.00 |
666.00 |
669.00 |
665.00 |
Limited Doc - 1sts |
2.23% |
2.30% |
2.54% |
2.49% |
2.29% |
2.27% |
2.63% |
2.49% |
2.90% |
3.41% |
3.29% |
4.05% |
4.18% |
4.30% |
3.98% |
3.90% |
4.43% |
4.73% |
5.21% |
5.25% |
5.33% |
FICO Limited Doc - 1sts |
625.30 |
612.20 |
613.50 |
612.50 |
607.00 |
610.10 |
608.60 |
610.30 |
612.30 |
616.80 |
616.60 |
611.00 |
619.50 |
618.80 |
611.80 |
630.80 |
622.00 |
627.00 |
629.00 |
634.00 |
631.00 |
Limited Doc - 2nds |
2.34% |
2.19% |
2.41% |
2.47% |
2.20% |
2.43% |
2.78% |
2.42% |
2.84% |
3.44% |
3.59% |
4.08% |
4.11% |
4.76% |
3.63% |
4.47% |
4.99% |
5.99% |
6.49% |
6.76% |
6.06% |
FICO Limited Doc - 2nds |
642.50 |
626.00 |
632.70 |
623.10 |
629.70 |
629.40 |
632.50 |
625.40 |
630.30 |
630.00 |
636.40 |
631.40 |
640.50 |
648.30 |
642.60 |
656.70 |
643.00 |
650.00 |
647.00 |
649.00 |
648.00 |
Stated 1sts % and FICO Score
Dec-04 |
Jan-05 |
Feb-05 |
Mar-05 |
Apr-05 |
May-05 |
Jun-05 |
Jul-05 |
Aug-05 |
Sep-05 |
Oct-05 |
Nov-05 |
Dec-05 |
Jan-06 |
Feb-06 |
Mar-06 |
Apr-06 |
May-06 |
Jun-06 |
Jul-06 |
Aug-06 |
|
Full Doc - 1sts |
55.47% |
52.69% |
53.44% |
51.73% |
49.96% |
48.04% |
46.58% |
46.81% |
46.58% |
47.21% |
47.45% |
48.23% |
43.20% |
43.11% |
42.87% |
46.70% |
47.80% |
52.47% |
53.25% |
53.35% |
52.13% |
FICO Full Doc - 1sts |
612.20 |
610.10 |
606.20 |
607.80 |
612.40 |
612.80 |
611.00 |
611.30 |
612.10 |
616.80 |
612.20 |
611.00 |
609.00 |
608.70 |
611.10 |
613.70 |
617.00 |
621.00 |
622.00 |
627.00 |
628.00 |
Full Doc - 2nds |
46.96% |
43.96% |
43.64% |
42.24% |
40.47% |
38.12% |
36.26% |
37.12% |
35.93% |
36.03% |
37.13% |
39.10% |
30.55% |
29.78% |
31.09% |
35.26% |
38.38% |
40.93% |
42.31% |
42.08% |
42.07% |
FICO Full Doc - 2nds |
635.50 |
634.60 |
631.20 |
629.70 |
633.30 |
633.80 |
631.20 |
631.10 |
634.50 |
635.80 |
633.00 |
630.20 |
640.10 |
645.60 |
643.50 |
644.70 |
646.00 |
650.00 |
647.00 |
651.00 |
648.00 |
Stated - 1sts |
42.31% |
45.01% |
44.02% |
45.78% |
47.75% |
49.69% |
50.79% |
50.71% |
50.53% |
49.38% |
49.27% |
47.72% |
52.62% |
52.59% |
53.16% |
49.41% |
47.77% |
42.80% |
41.54% |
41.40% |
42.54% |
FICO Stated - 1sts |
653.80 |
652.30 |
653.80 |
656.30 |
659.50 |
659.60 |
660.00 |
659.00 |
657.50 |
660.30 |
657.30 |
655.00 |
655.40 |
649.30 |
650.90 |
649.90 |
650.00 |
654.00 |
652.00 |
653.00 |
652.00 |
Stated - 2nds |
50.70% |
53.85% |
53.94% |
55.29% |
57.34% |
59.45% |
60.96% |
60.46% |
61.24% |
60.53% |
59.28% |
56.82% |
65.34% |
65.47% |
65.28% |
60.28% |
56.63% |
53.08% |
51.21% |
51.16% |
51.87% |
FICO Stated - 2nds |
671.20 |
670.30 |
670.30 |
671.90 |
673.00 |
673.30 |
674.30 |
672.60 |
673.80 |
675.90 |
672.20 |
670.40 |
670.20 |
666.50 |
668.00 |
666.10 |
665.00 |
670.00 |
666.00 |
669.00 |
665.00 |
Limited Doc - 1sts |
2.23% |
2.30% |
2.54% |
2.49% |
2.29% |
2.27% |
2.63% |
2.49% |
2.90% |
3.41% |
3.29% |
4.05% |
4.18% |
4.30% |
3.98% |
3.90% |
4.43% |
4.73% |
5.21% |
5.25% |
5.33% |
FICO Limited Doc - 1sts |
625.30 |
612.20 |
613.50 |
612.50 |
607.00 |
610.10 |
608.60 |
610.30 |
612.30 |
616.80 |
616.60 |
611.00 |
619.50 |
618.80 |
611.80 |
630.80 |
622.00 |
627.00 |
629.00 |
634.00 |
631.00 |
Limited Doc - 2nds |
2.34% |
2.19% |
2.41% |
2.47% |
2.20% |
2.43% |
2.78% |
2.42% |
2.84% |
3.44% |
3.59% |
4.08% |
4.11% |
4.76% |
3.63% |
4.47% |
4.99% |
5.99% |
6.49% |
6.76% |
6.06% |
FICO Limited Doc - 2nds |
642.50 |
626.00 |
632.70 |
623.10 |
629.70 |
629.40 |
632.50 |
625.40 |
630.30 |
630.00 |
636.40 |
631.40 |
640.50 |
648.30 |
642.60 |
656.70 |
643.00 |
650.00 |
647.00 |
649.00 |
648.00 |
Limited 1sts % and FICO Score
Dec-04 |
Jan-05 |
Feb-05 |
Mar-05 |
Apr-05 |
May-05 |
Jun-05 |
Jul-05 |
Aug-05 |
Sep-05 |
Oct-05 |
Nov-05 |
Dec-05 |
Jan-06 |
Feb-06 |
Mar-06 |
Apr-06 |
May-06 |
Jun-06 |
Jul-06 |
Aug-06 |
|
Full Doc - 1sts |
55.47% |
52.69% |
53.44% |
51.73% |
49.96% |
48.04% |
46.58% |
46.81% |
46.58% |
47.21% |
47.45% |
48.23% |
43.20% |
43.11% |
42.87% |
46.70% |
47.80% |
52.47% |
53.25% |
53.35% |
52.13% |
FICO Full Doc - 1sts |
612.20 |
610.10 |
606.20 |
607.80 |
612.40 |
612.80 |
611.00 |
611.30 |
612.10 |
616.80 |
612.20 |
611.00 |
609.00 |
608.70 |
611.10 |
613.70 |
617.00 |
621.00 |
622.00 |
627.00 |
628.00 |
Full Doc - 2nds |
46.96% |
43.96% |
43.64% |
42.24% |
40.47% |
38.12% |
36.26% |
37.12% |
35.93% |
36.03% |
37.13% |
39.10% |
30.55% |
29.78% |
31.09% |
35.26% |
38.38% |
40.93% |
42.31% |
42.08% |
42.07% |
FICO Full Doc - 2nds |
635.50 |
634.60 |
631.20 |
629.70 |
633.30 |
633.80 |
631.20 |
631.10 |
634.50 |
635.80 |
633.00 |
630.20 |
640.10 |
645.60 |
643.50 |
644.70 |
646.00 |
650.00 |
647.00 |
651.00 |
648.00 |
Stated - 1sts |
42.31% |
45.01% |
44.02% |
45.78% |
47.75% |
49.69% |
50.79% |
50.71% |
50.53% |
49.38% |
49.27% |
47.72% |
52.62% |
52.59% |
53.16% |
49.41% |
47.77% |
42.80% |
41.54% |
41.40% |
42.54% |
FICO Stated - 1sts |
653.80 |
652.30 |
653.80 |
656.30 |
659.50 |
659.60 |
660.00 |
659.00 |
657.50 |
660.30 |
657.30 |
655.00 |
655.40 |
649.30 |
650.90 |
649.90 |
650.00 |
654.00 |
652.00 |
653.00 |
652.00 |
Stated - 2nds |
50.70% |
53.85% |
53.94% |
55.29% |
57.34% |
59.45% |
60.96% |
60.46% |
61.24% |
60.53% |
59.28% |
56.82% |
65.34% |
65.47% |
65.28% |
60.28% |
56.63% |
53.08% |
51.21% |
51.16% |
51.87% |
FICO Stated - 2nds |
671.20 |
670.30 |
670.30 |
671.90 |
673.00 |
673.30 |
674.30 |
672.60 |
673.80 |
675.90 |
672.20 |
670.40 |
670.20 |
666.50 |
668.00 |
666.10 |
665.00 |
670.00 |
666.00 |
669.00 |
665.00 |
Limited Doc - 1sts |
2.23% |
2.30% |
2.54% |
2.49% |
2.29% |
2.27% |
2.63% |
2.49% |
2.90% |
3.41% |
3.29% |
4.05% |
4.18% |
4.30% |
3.98% |
3.90% |
4.43% |
4.73% |
5.21% |
5.25% |
5.33% |
FICO Limited Doc - 1sts |
625.30 |
612.20 |
613.50 |
612.50 |
607.00 |
610.10 |
608.60 |
610.30 |
612.30 |
616.80 |
616.60 |
611.00 |
619.50 |
618.80 |
611.80 |
630.80 |
622.00 |
627.00 |
629.00 |
634.00 |
631.00 |
Limited Doc - 2nds |
2.34% |
2.19% |
2.41% |
2.47% |
2.20% |
2.43% |
2.78% |
2.42% |
2.84% |
3.44% |
3.59% |
4.08% |
4.11% |
4.76% |
3.63% |
4.47% |
4.99% |
5.99% |
6.49% |
6.76% |
6.06% |
FICO Limited Doc - 2nds |
642.50 |
626.00 |
632.70 |
623.10 |
629.70 |
629.40 |
632.50 |
625.40 |
630.30 |
630.00 |
636.40 |
631.40 |
640.50 |
648.30 |
642.60 |
656.70 |
643.00 |
650.00 |
647.00 |
649.00 |
648.00 |
Full Doc 2nds % and FICO Score
Dec-04 |
Jan-05 |
Feb-05 |
Mar-05 |
Apr-05 |
May-05 |
Jun-05 |
Jul-05 |
Aug-05 |
Sep-05 |
Oct-05 |
Nov-05 |
Dec-05 |
Jan-06 |
Feb-06 |
Mar-06 |
Apr-06 |
May-06 |
Jun-06 |
Jul-06 |
Aug-06 |
|
Full Doc - 1sts |
55.47% |
52.69% |
53.44% |
51.73% |
49.96% |
48.04% |
46.58% |
46.81% |
46.58% |
47.21% |
47.45% |
48.23% |
43.20% |
43.11% |
42.87% |
46.70% |
47.80% |
52.47% |
53.25% |
53.35% |
52.13% |
FICO Full Doc - 1sts |
612.20 |
610.10 |
606.20 |
607.80 |
612.40 |
612.80 |
611.00 |
611.30 |
612.10 |
616.80 |
612.20 |
611.00 |
609.00 |
608.70 |
611.10 |
613.70 |
617.00 |
621.00 |
622.00 |
627.00 |
628.00 |
Full Doc - 2nds |
46.96% |
43.96% |
43.64% |
42.24% |
40.47% |
38.12% |
36.26% |
37.12% |
35.93% |
36.03% |
37.13% |
39.10% |
30.55% |
29.78% |
31.09% |
35.26% |
38.38% |
40.93% |
42.31% |
42.08% |
42.07% |
FICO Full Doc - 2nds |
635.50 |
634.60 |
631.20 |
629.70 |
633.30 |
633.80 |
631.20 |
631.10 |
634.50 |
635.80 |
633.00 |
630.20 |
640.10 |
645.60 |
643.50 |
644.70 |
646.00 |
650.00 |
647.00 |
651.00 |
648.00 |
Stated - 1sts |
42.31% |
45.01% |
44.02% |
45.78% |
47.75% |
49.69% |
50.79% |
50.71% |
50.53% |
49.38% |
49.27% |
47.72% |
52.62% |
52.59% |
53.16% |
49.41% |
47.77% |
42.80% |
41.54% |
41.40% |
42.54% |
FICO Stated - 1sts |
653.80 |
652.30 |
653.80 |
656.30 |
659.50 |
659.60 |
660.00 |
659.00 |
657.50 |
660.30 |
657.30 |
655.00 |
655.40 |
649.30 |
650.90 |
649.90 |
650.00 |
654.00 |
652.00 |
653.00 |
652.00 |
Stated - 2nds |
50.70% |
53.85% |
53.94% |
55.29% |
57.34% |
59.45% |
60.96% |
60.46% |
61.24% |
60.53% |
59.28% |
56.82% |
65.34% |
65.47% |
65.28% |
60.28% |
56.63% |
53.08% |
51.21% |
51.16% |
51.87% |
FICO Stated - 2nds |
671.20 |
670.30 |
670.30 |
671.90 |
673.00 |
673.30 |
674.30 |
672.60 |
673.80 |
675.90 |
672.20 |
670.40 |
670.20 |
666.50 |
668.00 |
666.10 |
665.00 |
670.00 |
666.00 |
669.00 |
665.00 |
Limited Doc - 1sts |
2.23% |
2.30% |
2.54% |
2.49% |
2.29% |
2.27% |
2.63% |
2.49% |
2.90% |
3.41% |
3.29% |
4.05% |
4.18% |
4.30% |
3.98% |
3.90% |
4.43% |
4.73% |
5.21% |
5.25% |
5.33% |
FICO Limited Doc - 1sts |
625.30 |
612.20 |
613.50 |
612.50 |
607.00 |
610.10 |
608.60 |
610.30 |
612.30 |
616.80 |
616.60 |
611.00 |
619.50 |
618.80 |
611.80 |
630.80 |
622.00 |
627.00 |
629.00 |
634.00 |
631.00 |
Limited Doc - 2nds |
2.34% |
2.19% |
2.41% |
2.47% |
2.20% |
2.43% |
2.78% |
2.42% |
2.84% |
3.44% |
3.59% |
4.08% |
4.11% |
4.76% |
3.63% |
4.47% |
4.99% |
5.99% |
6.49% |
6.76% |
6.06% |
FICO Limited Doc - 2nds |
642.50 |
626.00 |
632.70 |
623.10 |
629.70 |
629.40 |
632.50 |
625.40 |
630.30 |
630.00 |
636.40 |
631.40 |
640.50 |
648.30 |
642.60 |
656.70 |
643.00 |
650.00 |
647.00 |
649.00 |
648.00 |
Stated 2nds % and FICO Score
Dec-04 |
Jan-05 |
Feb-05 |
Mar-05 |
Apr-05 |
May-05 |
Jun-05 |
Jul-05 |
Aug-05 |
Sep-05 |
Oct-05 |
Nov-05 |
Dec-05 |
Jan-06 |
Feb-06 |
Mar-06 |
Apr-06 |
May-06 |
Jun-06 |
Jul-06 |
Aug-06 |
|
Full Doc - 1sts |
55.47% |
52.69% |
53.44% |
51.73% |
49.96% |
48.04% |
46.58% |
46.81% |
46.58% |
47.21% |
47.45% |
48.23% |
43.20% |
43.11% |
42.87% |
46.70% |
47.80% |
52.47% |
53.25% |
53.35% |
52.13% |
FICO Full Doc - 1sts |
612.20 |
610.10 |
606.20 |
607.80 |
612.40 |
612.80 |
611.00 |
611.30 |
612.10 |
616.80 |
612.20 |
611.00 |
609.00 |
608.70 |
611.10 |
613.70 |
617.00 |
621.00 |
622.00 |
627.00 |
628.00 |
Full Doc - 2nds |
46.96% |
43.96% |
43.64% |
42.24% |
40.47% |
38.12% |
36.26% |
37.12% |
35.93% |
36.03% |
37.13% |
39.10% |
30.55% |
29.78% |
31.09% |
35.26% |
38.38% |
40.93% |
42.31% |
42.08% |
42.07% |
FICO Full Doc - 2nds |
635.50 |
634.60 |
631.20 |
629.70 |
633.30 |
633.80 |
631.20 |
631.10 |
634.50 |
635.80 |
633.00 |
630.20 |
640.10 |
645.60 |
643.50 |
644.70 |
646.00 |
650.00 |
647.00 |
651.00 |
648.00 |
Stated - 1sts |
42.31% |
45.01% |
44.02% |
45.78% |
47.75% |
49.69% |
50.79% |
50.71% |
50.53% |
49.38% |
49.27% |
47.72% |
52.62% |
52.59% |
53.16% |
49.41% |
47.77% |
42.80% |
41.54% |
41.40% |
42.54% |
FICO Stated - 1sts |
653.80 |
652.30 |
653.80 |
656.30 |
659.50 |
659.60 |
660.00 |
659.00 |
657.50 |
660.30 |
657.30 |
655.00 |
655.40 |
649.30 |
650.90 |
649.90 |
650.00 |
654.00 |
652.00 |
653.00 |
652.00 |
Stated - 2nds |
50.70% |
53.85% |
53.94% |
55.29% |
57.34% |
59.45% |
60.96% |
60.46% |
61.24% |
60.53% |
59.28% |
56.82% |
65.34% |
65.47% |
65.28% |
60.28% |
56.63% |
53.08% |
51.21% |
51.16% |
51.87% |
FICO Stated - 2nds |
671.20 |
670.30 |
670.30 |
671.90 |
673.00 |
673.30 |
674.30 |
672.60 |
673.80 |
675.90 |
672.20 |
670.40 |
670.20 |
666.50 |
668.00 |
666.10 |
665.00 |
670.00 |
666.00 |
669.00 |
665.00 |
Limited Doc - 1sts |
2.23% |
2.30% |
2.54% |
2.49% |
2.29% |
2.27% |
2.63% |
2.49% |
2.90% |
3.41% |
3.29% |
4.05% |
4.18% |
4.30% |
3.98% |
3.90% |
4.43% |
4.73% |
5.21% |
5.25% |
5.33% |
FICO Limited Doc - 1sts |
625.30 |
612.20 |
613.50 |
612.50 |
607.00 |
610.10 |
608.60 |
610.30 |
612.30 |
616.80 |
616.60 |
611.00 |
619.50 |
618.80 |
611.80 |
630.80 |
622.00 |
627.00 |
629.00 |
634.00 |
631.00 |
Limited Doc - 2nds |
2.34% |
2.19% |
2.41% |
2.47% |
2.20% |
2.43% |
2.78% |
2.42% |
2.84% |
3.44% |
3.59% |
4.08% |
4.11% |
4.76% |
3.63% |
4.47% |
4.99% |
5.99% |
6.49% |
6.76% |
6.06% |
FICO Limited Doc - 2nds |
642.50 |
626.00 |
632.70 |
623.10 |
629.70 |
629.40 |
632.50 |
625.40 |
630.30 |
630.00 |
636.40 |
631.40 |
640.50 |
648.30 |
642.60 |
656.70 |
643.00 |
650.00 |
647.00 |
649.00 |
648.00 |
Limited 2nds % and FICO Score
Dec-04 |
Jan-05 |
Feb-05 |
Mar-05 |
Apr-05 |
May-05 |
Jun-05 |
Jul-05 |
Aug-05 |
Sep-05 |
Oct-05 |
Nov-05 |
Dec-05 |
Jan-06 |
Feb-06 |
Mar-06 |
Apr-06 |
May-06 |
Jun-06 |
Jul-06 |
Aug-06 |
|
Full Doc - 1sts |
55.47% |
52.69% |
53.44% |
51.73% |
49.96% |
48.04% |
46.58% |
46.81% |
46.58% |
47.21% |
47.45% |
48.23% |
43.20% |
43.11% |
42.87% |
46.70% |
47.80% |
52.47% |
53.25% |
53.35% |
52.13% |
FICO Full Doc - 1sts |
612.20 |
610.10 |
606.20 |
607.80 |
612.40 |
612.80 |
611.00 |
611.30 |
612.10 |
616.80 |
612.20 |
611.00 |
609.00 |
608.70 |
611.10 |
613.70 |
617.00 |
621.00 |
622.00 |
627.00 |
628.00 |
Full Doc - 2nds |
46.96% |
43.96% |
43.64% |
42.24% |
40.47% |
38.12% |
36.26% |
37.12% |
35.93% |
36.03% |
37.13% |
39.10% |
30.55% |
29.78% |
31.09% |
35.26% |
38.38% |
40.93% |
42.31% |
42.08% |
42.07% |
FICO Full Doc - 2nds |
635.50 |
634.60 |
631.20 |
629.70 |
633.30 |
633.80 |
631.20 |
631.10 |
634.50 |
635.80 |
633.00 |
630.20 |
640.10 |
645.60 |
643.50 |
644.70 |
646.00 |
650.00 |
647.00 |
651.00 |
648.00 |
Stated - 1sts |
42.31% |
45.01% |
44.02% |
45.78% |
47.75% |
49.69% |
50.79% |
50.71% |
50.53% |
49.38% |
49.27% |
47.72% |
52.62% |
52.59% |
53.16% |
49.41% |
47.77% |
42.80% |
41.54% |
41.40% |
42.54% |
FICO Stated - 1sts |
653.80 |
652.30 |
653.80 |
656.30 |
659.50 |
659.60 |
660.00 |
659.00 |
657.50 |
660.30 |
657.30 |
655.00 |
655.40 |
649.30 |
650.90 |
649.90 |
650.00 |
654.00 |
652.00 |
653.00 |
652.00 |
Stated - 2nds |
50.70% |
53.85% |
53.94% |
55.29% |
57.34% |
59.45% |
60.96% |
60.46% |
61.24% |
60.53% |
59.28% |
56.82% |
65.34% |
65.47% |
65.28% |
60.28% |
56.63% |
53.08% |
51.21% |
51.16% |
51.87% |
FICO Stated - 2nds |
671.20 |
670.30 |
670.30 |
671.90 |
673.00 |
673.30 |
674.30 |
672.60 |
673.80 |
675.90 |
672.20 |
670.40 |
670.20 |
666.50 |
668.00 |
666.10 |
665.00 |
670.00 |
666.00 |
669.00 |
665.00 |
Limited Doc - 1sts |
2.23% |
2.30% |
2.54% |
2.49% |
2.29% |
2.27% |
2.63% |
2.49% |
2.90% |
3.41% |
3.29% |
4.05% |
4.18% |
4.30% |
3.98% |
3.90% |
4.43% |
4.73% |
5.21% |
5.25% |
5.33% |
FICO Limited Doc - 1sts |
625.30 |
612.20 |
613.50 |
612.50 |
607.00 |
610.10 |
608.60 |
610.30 |
612.30 |
616.80 |
616.60 |
611.00 |
619.50 |
618.80 |
611.80 |
630.80 |
622.00 |
627.00 |
629.00 |
634.00 |
631.00 |
Limited Doc - 2nds |
2.34% |
2.19% |
2.41% |
2.47% |
2.20% |
2.43% |
2.78% |
2.42% |
2.84% |
3.44% |
3.59% |
4.08% |
4.11% |
4.76% |
3.63% |
4.47% |
4.99% |
5.99% |
6.49% |
6.76% |
6.06% |
FICO Limited Doc - 2nds |
642.50 |
626.00 |
632.70 |
623.10 |
629.70 |
629.40 |
632.50 |
625.40 |
630.30 |
630.00 |
636.40 |
631.40 |
640.50 |
648.30 |
642.60 |
656.70 |
643.00 |
650.00 |
647.00 |
649.00 |
648.00 |
Note: Long Beach Mortgage does not originate stand-alone 2nds
Slide 22
Higher Average FICOs for each loan purpose
Purchase 1sts % and FICO Score
Dec-04 |
Jan-05 |
Feb-05 |
Mar-05 |
Apr-05 |
May-05 |
Jun-05 |
Jul-05 |
Aug-05 |
Sep-05 |
Oct-05 |
Nov-05 |
Dec-05 |
Jan-06 |
Feb-06 |
Mar-06 |
Apr-06 |
May-06 |
Jun-06 |
Jul-06 |
Aug-06 |
|
Purch - 1sts |
52.28% |
51.52% |
50.78% |
55.02% |
57.94% |
60.36% |
63.04% |
60.71% |
60.12% |
63.89% |
60.77% |
61.00% |
64.31% |
59.81% |
59.20% |
61.92% |
60.28% |
53.30% |
52.06% |
49.89% |
48.56% |
FICO Purch - 1sts |
649.00 |
648.40 |
647.80 |
649.30 |
651.70 |
652.90 |
652.20 |
652.40 |
652.00 |
654.20 |
651.60 |
648.10 |
650.80 |
649.50 |
651.10 |
647.70 |
648.00 |
652.00 |
653.00 |
657.00 |
656.00 |
Purch - 2nds |
83.67% |
83.68% |
81.46% |
85.50% |
86.17% |
87.01% |
90.11% |
90.17% |
88.90% |
91.89% |
89.38% |
87.67% |
89.46% |
88.15% |
87.08% |
87.86% |
87.83% |
84.85% |
84.35% |
81.91% |
81.67% |
FICO Purch - 2nds |
656.5 |
656.00 |
655.00 |
655.50 |
657.90 |
659.30 |
659.00 |
657.30 |
660.00 |
659.30 |
657.80 |
655.00 |
661.40 |
661.10 |
661.70 |
659.20 |
658.00 |
662.00 |
658.00 |
662.00 |
659.00 |
Cashout - 1sts |
43.96% |
44.58% |
45.18% |
41.69% |
38.75% |
36.38% |
34.07% |
36.35% |
37.05% |
33.41% |
36.07% |
35.52% |
32.00% |
35.98% |
36.84% |
34.46% |
35.94% |
42.43% |
43.59% |
44.25% |
43.99% |
FICO Cashout - 1sts |
609.70 |
609.10 |
607.00 |
607.60 |
611.80 |
610.70 |
607.60 |
609.40 |
609.40 |
609.90 |
607.90 |
607.30 |
603.40 |
601.60 |
604.50 |
607.20 |
611.00 |
617.00 |
615.00 |
618.00 |
619.00 |
Cashout - 2nds |
15.13% |
14.99% |
17.50% |
13.79% |
13.22% |
12.20% |
9.13% |
9.08% |
10.49% |
7.51% |
10.04% |
11.52% |
10.07% |
11.33% |
12.42% |
11.63% |
11.40% |
14.27% |
14.50% |
14.10% |
10.78% |
FICO Cashout - 2nds |
639.4 |
641.90 |
640.60 |
637.90 |
643.70 |
644.20 |
642.20 |
646.00 |
645.70 |
669.60 |
644.70 |
640.00 |
645.90 |
647.00 |
644.80 |
650.90 |
646.00 |
648.00 |
650.00 |
652.00 |
653.00 |
Refi (no cashout) - 1sts |
3.76% |
3.90% |
4.04% |
3.29% |
3.31% |
3.27% |
2.89% |
2.93% |
2.82% |
2.71% |
3.17% |
3.48% |
3.69% |
4.21% |
3.96% |
3.63% |
3.78% |
4.26% |
4.35% |
5.85% |
7.45% |
FICO Refi (no cashout) - 1sts |
605.6 |
602.80 |
597.80 |
596.10 |
607.90 |
606.30 |
609.70 |
608.70 |
610.50 |
611.30 |
612.10 |
603.20 |
603.90 |
607.00 |
610.30 |
606.10 |
620.00 |
616.00 |
609.00 |
621.00 |
634.00 |
Refi (no cashout) - 2nds |
1.20% |
1.33% |
1.04% |
0.71% |
0.60% |
0.79% |
0.77% |
0.76% |
0.61% |
0.60% |
0.58% |
0.81% |
0.48% |
0.52% |
0.50% |
0.51% |
0.77% |
0.88% |
1.16% |
3.99% |
7.55% |
FICO Refi (no cashout) - 2nds |
640 |
639.5 |
638.6 |
629.5 |
649.2 |
631.7 |
641.3 |
627 |
650 |
624.2 |
635.3 |
632.8 |
637.4 |
646.9 |
643.7 |
640.4 |
640 |
650 |
644 |
644 |
647 |
Cashout 1sts % and FICO Score
Dec-04 |
Jan-05 |
Feb-05 |
Mar-05 |
Apr-05 |
May-05 |
Jun-05 |
Jul-05 |
Aug-05 |
Sep-05 |
Oct-05 |
Nov-05 |
Dec-05 |
Jan-06 |
Feb-06 |
Mar-06 |
Apr-06 |
May-06 |
Jun-06 |
Jul-06 |
Aug-06 |
|
Purch - 1sts |
52.28% |
51.52% |
50.78% |
55.02% |
57.94% |
60.36% |
63.04% |
60.71% |
60.12% |
63.89% |
60.77% |
61.00% |
64.31% |
59.81% |
59.20% |
61.92% |
60.28% |
53.30% |
52.06% |
49.89% |
48.56% |
FICO Purch - 1sts |
649.00 |
648.40 |
647.80 |
649.30 |
651.70 |
652.90 |
652.20 |
652.40 |
652.00 |
654.20 |
651.60 |
648.10 |
650.80 |
649.50 |
651.10 |
647.70 |
648.00 |
652.00 |
653.00 |
657.00 |
656.00 |
Purch - 2nds |
83.67% |
83.68% |
81.46% |
85.50% |
86.17% |
87.01% |
90.11% |
90.17% |
88.90% |
91.89% |
89.38% |
87.67% |
89.46% |
88.15% |
87.08% |
87.86% |
87.83% |
84.85% |
84.35% |
81.91% |
81.67% |
FICO Purch - 2nds |
656.5 |
656.00 |
655.00 |
655.50 |
657.90 |
659.30 |
659.00 |
657.30 |
660.00 |
659.30 |
657.80 |
655.00 |
661.40 |
661.10 |
661.70 |
659.20 |
658.00 |
662.00 |
658.00 |
662.00 |
659.00 |
Cashout - 1sts |
43.96% |
44.58% |
45.18% |
41.69% |
38.75% |
36.38% |
34.07% |
36.35% |
37.05% |
33.41% |
36.07% |
35.52% |
32.00% |
35.98% |
36.84% |
34.46% |
35.94% |
42.43% |
43.59% |
44.25% |
43.99% |
FICO Cashout - 1sts |
609.70 |
609.10 |
607.00 |
607.60 |
611.80 |
610.70 |
607.60 |
609.40 |
609.40 |
609.90 |
607.90 |
607.30 |
603.40 |
601.60 |
604.50 |
607.20 |
611.00 |
617.00 |
615.00 |
618.00 |
619.00 |
Cashout - 2nds |
15.13% |
14.99% |
17.50% |
13.79% |
13.22% |
12.20% |
9.13% |
9.08% |
10.49% |
7.51% |
10.04% |
11.52% |
10.07% |
11.33% |
12.42% |
11.63% |
11.40% |
14.27% |
14.50% |
14.10% |
10.78% |
FICO Cashout - 2nds |
639.4 |
641.90 |
640.60 |
637.90 |
643.70 |
644.20 |
642.20 |
646.00 |
645.70 |
669.60 |
644.70 |
640.00 |
645.90 |
647.00 |
644.80 |
650.90 |
646.00 |
648.00 |
650.00 |
652.00 |
653.00 |
Refi (no cashout) - 1sts |
3.76% |
3.90% |
4.04% |
3.29% |
3.31% |
3.27% |
2.89% |
2.93% |
2.82% |
2.71% |
3.17% |
3.48% |
3.69% |
4.21% |
3.96% |
3.63% |
3.78% |
4.26% |
4.35% |
5.85% |
7.45% |
FICO Refi (no cashout) - 1sts |
605.6 |
602.80 |
597.80 |
596.10 |
607.90 |
606.30 |
609.70 |
608.70 |
610.50 |
611.30 |
612.10 |
603.20 |
603.90 |
607.00 |
610.30 |
606.10 |
620.00 |
616.00 |
609.00 |
621.00 |
634.00 |
Refi (no cashout) - 2nds |
1.20% |
1.33% |
1.04% |
0.71% |
0.60% |
0.79% |
0.77% |
0.76% |
0.61% |
0.60% |
0.58% |
0.81% |
0.48% |
0.52% |
0.50% |
0.51% |
0.77% |
0.88% |
1.16% |
3.99% |
7.55% |
FICO Refi (no cashout) - 2nds |
640 |
639.5 |
638.6 |
629.5 |
649.2 |
631.7 |
641.3 |
627 |
650 |
624.2 |
635.3 |
632.8 |
637.4 |
646.9 |
643.7 |
640.4 |
640 |
650 |
644 |
644 |
647 |
Refi (no cashout) 1sts % and FICO Score
Dec-04 |
Jan-05 |
Feb-05 |
Mar-05 |
Apr-05 |
May-05 |
Jun-05 |
Jul-05 |
Aug-05 |
Sep-05 |
Oct-05 |
Nov-05 |
Dec-05 |
Jan-06 |
Feb-06 |
Mar-06 |
Apr-06 |
May-06 |
Jun-06 |
Jul-06 |
Aug-06 |
||
Purch - 1sts |
52.28% |
51.52% |
50.78% |
55.02% |
57.94% |
60.36% |
63.04% |
60.71% |
60.12% |
63.89% |
60.77% |
61.00% |
64.31% |
59.81% |
59.20% |
61.92% |
60.28% |
53.30% |
52.06% |
49.89% |
48.56% |
|
FICO Purch - 1sts |
649.00 |
648.40 |
647.80 |
649.30 |
651.70 |
652.90 |
652.20 |
652.40 |
652.00 |
654.20 |
651.60 |
648.10 |
650.80 |
649.50 |
651.10 |
647.70 |
648.00 |
652.00 |
653.00 |
657.00 |
656.00 |
|
Purch - 2nds |
83.67% |
83.68% |
81.46% |
85.50% |
86.17% |
87.01% |
90.11% |
90.17% |
88.90% |
91.89% |
89.38% |
87.67% |
89.46% |
88.15% |
87.08% |
87.86% |
87.83% |
84.85% |
84.35% |
81.91% |
81.67% |
|
FICO Purch - 2nds |
656.5 |
656.00 |
655.00 |
655.50 |
657.90 |
659.30 |
659.00 |
657.30 |
660.00 |
659.30 |
657.80 |
655.00 |
661.40 |
661.10 |
661.70 |
659.20 |
658.00 |
662.00 |
658.00 |
662.00 |
659.00 |
|
Cashout - 1sts |
43.96% |
44.58% |
45.18% |
41.69% |
38.75% |
36.38% |
34.07% |
36.35% |
37.05% |
33.41% |
36.07% |
35.52% |
32.00% |
35.98% |
36.84% |
34.46% |
35.94% |
42.43% |
43.59% |
44.25% |
43.99% |
|
FICO Cashout - 1sts |
609.70 |
609.10 |
607.00 |
607.60 |
611.80 |
610.70 |
607.60 |
609.40 |
609.40 |
609.90 |
607.90 |
607.30 |
603.40 |
601.60 |
604.50 |
607.20 |
611.00 |
617.00 |
615.00 |
618.00 |
619.00 |
|
Cashout - 2nds |
15.13% |
14.99% |
17.50% |
13.79% |
13.22% |
12.20% |
9.13% |
9.08% |
10.49% |
7.51% |
10.04% |
11.52% |
10.07% |
11.33% |
12.42% |
11.63% |
11.40% |
14.27% |
14.50% |
14.10% |
10.78% |
|
FICO Cashout - 2nds |
639.4 |
641.90 |
640.60 |
637.90 |
643.70 |
644.20 |
642.20 |
646.00 |
645.70 |
669.60 |
644.70 |
640.00 |
645.90 |
647.00 |
644.80 |
650.90 |
646.00 |
648.00 |
650.00 |
652.00 |
653.00 |
|
Refi (no cashout) - 1sts |
3.76% |
3.90% |
4.04% |
3.29% |
3.31% |
3.27% |
2.89% |
2.93% |
2.82% |
2.71% |
3.17% |
3.48% |
3.69% |
4.21% |
3.96% |
3.63% |
3.78% |
4.26% |
4.35% |
5.85% |
7.45% |
|
FICO Refi (no cashout) - 1sts |
605.6 |
602.80 |
597.80 |
596.10 |
607.90 |
606.30 |
609.70 |
608.70 |
610.50 |
611.30 |
612.10 |
603.20 |
603.90 |
607.00 |
610.30 |
606.10 |
620.00 |
616.00 |
609.00 |
621.00 |
634.00 |
|
Refi (no cashout) - 2nds |
1.20% |
1.33% |
1.04% |
0.71% |
0.60% |
0.79% |
0.77% |
0.76% |
0.61% |
0.60% |
0.58% |
0.81% |
0.48% |
0.52% |
0.50% |
0.51% |
0.77% |
0.88% |
1.16% |
3.99% |
7.55% |
|
FICO Refi (no cashout) - 2nds |
640 |
639.5 |
638.6 |
629.5 |
649.2 |
631.7 |
641.3 |
627 |
650 |
624.2 |
635.3 |
632.8 |
637.4 |
646.9 |
643.7 |
640.4 |
640 |
650 |
644 |
644 |
647 |
Purchase 2nds % and FICO Score
|
Dec-04 |
Jan-05 |
Feb-05 |
Mar-05 |
Apr-05 |
May-05 |
Jun-05 |
Jul-05 |
Aug-05 |
Sep-05 |
Oct-05 |
Nov-05 |
Dec-05 |
Jan-06 |
Feb-06 |
Mar-06 |
Apr-06 |
May-06 |
Jun-06 |
Jul-06 |
Aug-06 |
Purch - 1sts |
52.28% |
51.52% |
50.78% |
55.02% |
57.94% |
60.36% |
63.04% |
60.71% |
60.12% |
63.89% |
60.77% |
61.00% |
64.31% |
59.81% |
59.20% |
61.92% |
60.28% |
53.30% |
52.06% |
49.89% |
48.56% |
FICO Purch - 1sts |
649.00 |
648.40 |
647.80 |
649.30 |
651.70 |
652.90 |
652.20 |
652.40 |
652.00 |
654.20 |
651.60 |
648.10 |
650.80 |
649.50 |
651.10 |
647.70 |
648.00 |
652.00 |
653.00 |
657.00 |
656.00 |
Purch - 2nds |
83.67% |
83.68% |
81.46% |
85.50% |
86.17% |
87.01% |
90.11% |
90.17% |
88.90% |
91.89% |
89.38% |
87.67% |
89.46% |
88.15% |
87.08% |
87.86% |
87.83% |
84.85% |
84.35% |
81.91% |
81.67% |
FICO Purch - 2nds |
656.5 |
656.00 |
655.00 |
655.50 |
657.90 |
659.30 |
659.00 |
657.30 |
660.00 |
659.30 |
657.80 |
655.00 |
661.40 |
661.10 |
661.70 |
659.20 |
658.00 |
662.00 |
658.00 |
662.00 |
659.00 |
Cashout - 1sts |
43.96% |
44.58% |
45.18% |
41.69% |
38.75% |
36.38% |
34.07% |
36.35% |
37.05% |
33.41% |
36.07% |
35.52% |
32.00% |
35.98% |
36.84% |
34.46% |
35.94% |
42.43% |
43.59% |
44.25% |
43.99% |
FICO Cashout - 1sts |
609.70 |
609.10 |
607.00 |
607.60 |
611.80 |
610.70 |
607.60 |
609.40 |
609.40 |
609.90 |
607.90 |
607.30 |
603.40 |
601.60 |
604.50 |
607.20 |
611.00 |
617.00 |
615.00 |
618.00 |
619.00 |
Cashout - 2nds |
15.13% |
14.99% |
17.50% |
13.79% |
13.22% |
12.20% |
9.13% |
9.08% |
10.49% |
7.51% |
10.04% |
11.52% |
10.07% |
11.33% |
12.42% |
11.63% |
11.40% |
14.27% |
14.50% |
14.10% |
10.78% |
FICO Cashout - 2nds |
639.4 |
641.90 |
640.60 |
637.90 |
643.70 |
644.20 |
642.20 |
646.00 |
645.70 |
669.60 |
644.70 |
640.00 |
645.90 |
647.00 |
644.80 |
650.90 |
646.00 |
648.00 |
650.00 |
652.00 |
653.00 |
Refi (no cashout) - 1sts |
3.76% |
3.90% |
4.04% |
3.29% |
3.31% |
3.27% |
2.89% |
2.93% |
2.82% |
2.71% |
3.17% |
3.48% |
3.69% |
4.21% |
3.96% |
3.63% |
3.78% |
4.26% |
4.35% |
5.85% |
7.45% |
FICO Refi (no cashout) - 1sts |
605.6 |
602.80 |
597.80 |
596.10 |
607.90 |
606.30 |
609.70 |
608.70 |
610.50 |
611.30 |
612.10 |
603.20 |
603.90 |
607.00 |
610.30 |
606.10 |
620.00 |
616.00 |
609.00 |
621.00 |
634.00 |
Refi (no cashout) - 2nds |
1.20% |
1.33% |
1.04% |
0.71% |
0.60% |
0.79% |
0.77% |
0.76% |
0.61% |
0.60% |
0.58% |
0.81% |
0.48% |
0.52% |
0.50% |
0.51% |
0.77% |
0.88% |
1.16% |
3.99% |
7.55% |
FICO Refi (no cashout) - 2nds |
640 |
639.5 |
638.6 |
629.5 |
649.2 |
631.7 |
641.3 |
627 |
650 |
624.2 |
635.3 |
632.8 |
637.4 |
646.9 |
643.7 |
640.4 |
640 |
650 |
644 |
644 |
647 |
Cashout 2nds % and FICO Score
|
Dec-04 |
Jan-05 |
Feb-05 |
Mar-05 |
Apr-05 |
May-05 |
Jun-05 |
Jul-05 |
Aug-05 |
Sep-05 |
Oct-05 |
Nov-05 |
Dec-05 |
Jan-06 |
Feb-06 |
Mar-06 |
Apr-06 |
May-06 |
Jun-06 |
Jul-06 |
Aug-06 |
|
Purch - 1sts |
52.28% |
51.52% |
50.78% |
55.02% |
57.94% |
60.36% |
63.04% |
60.71% |
60.12% |
63.89% |
60.77% |
61.00% |
64.31% |
59.81% |
59.20% |
61.92% |
60.28% |
53.30% |
52.06% |
49.89% |
48.56% |
|
FICO Purch - 1sts |
649.00 |
648.40 |
647.80 |
649.30 |
651.70 |
652.90 |
652.20 |
652.40 |
652.00 |
654.20 |
651.60 |
648.10 |
650.80 |
649.50 |
651.10 |
647.70 |
648.00 |
652.00 |
653.00 |
657.00 |
656.00 |
|
Purch - 2nds |
83.67% |
83.68% |
81.46% |
85.50% |
86.17% |
87.01% |
90.11% |
90.17% |
88.90% |
91.89% |
89.38% |
87.67% |
89.46% |
88.15% |
87.08% |
87.86% |
87.83% |
84.85% |
84.35% |
81.91% |
81.67% |
|
FICO Purch - 2nds |
656.5 |
656.00 |
655.00 |
655.50 |
657.90 |
659.30 |
659.00 |
657.30 |
660.00 |
659.30 |
657.80 |
655.00 |
661.40 |
661.10 |
661.70 |
659.20 |
658.00 |
662.00 |
658.00 |
662.00 |
659.00 |
|
Cashout - 1sts |
43.96% |
44.58% |
45.18% |
41.69% |
38.75% |
36.38% |
34.07% |
36.35% |
37.05% |
33.41% |
36.07% |
35.52% |
32.00% |
35.98% |
36.84% |
34.46% |
35.94% |
42.43% |
43.59% |
44.25% |
43.99% |
|
FICO Cashout - 1sts |
609.70 |
609.10 |
607.00 |
607.60 |
611.80 |
610.70 |
607.60 |
609.40 |
609.40 |
609.90 |
607.90 |
607.30 |
603.40 |
601.60 |
604.50 |
607.20 |
611.00 |
617.00 |
615.00 |
618.00 |
619.00 |
|
Cashout - 2nds |
15.13% |
14.99% |
17.50% |
13.79% |
13.22% |
12.20% |
9.13% |
9.08% |
10.49% |
7.51% |
10.04% |
11.52% |
10.07% |
11.33% |
12.42% |
11.63% |
11.40% |
14.27% |
14.50% |
14.10% |
10.78% |
|
FICO Cashout - 2nds |
639.4 |
641.90 |
640.60 |
637.90 |
643.70 |
644.20 |
642.20 |
646.00 |
645.70 |
669.60 |
644.70 |
640.00 |
645.90 |
647.00 |
644.80 |
650.90 |
646.00 |
648.00 |
650.00 |
652.00 |
653.00 |
|
Refi (no cashout) - 1sts |
3.76% |
3.90% |
4.04% |
3.29% |
3.31% |
3.27% |
2.89% |
2.93% |
2.82% |
2.71% |
3.17% |
3.48% |
3.69% |
4.21% |
3.96% |
3.63% |
3.78% |
4.26% |
4.35% |
5.85% |
7.45% |
|
FICO Refi (no cashout) - 1sts |
605.6 |
602.80 |
597.80 |
596.10 |
607.90 |
606.30 |
609.70 |
608.70 |
610.50 |
611.30 |
612.10 |
603.20 |
603.90 |
607.00 |
610.30 |
606.10 |
620.00 |
616.00 |
609.00 |
621.00 |
634.00 |
|
Refi (no cashout) - 2nds |
1.20% |
1.33% |
1.04% |
0.71% |
0.60% |
0.79% |
0.77% |
0.76% |
0.61% |
0.60% |
0.58% |
0.81% |
0.48% |
0.52% |
0.50% |
0.51% |
0.77% |
0.88% |
1.16% |
3.99% |
7.55% |
|
FICO Refi (no cashout) - 2nds |
640 |
639.5 |
638.6 |
629.5 |
649.2 |
631.7 |
641.3 |
627 |
650 |
624.2 |
635.3 |
632.8 |
637.4 |
646.9 |
643.7 |
640.4 |
640 |
650 |
644 |
644 |
647 |
|
Refi (no cashout) 2nds % and FICO Score
|
Dec-04 |
Jan-05 |
Feb-05 |
Mar-05 |
Apr-05 |
May-05 |
Jun-05 |
Jul-05 |
Aug-05 |
Sep-05 |
Oct-05 |
Nov-05 |
Dec-05 |
Jan-06 |
Feb-06 |
Mar-06 |
Apr-06 |
May-06 |
Jun-06 |
Jul-06 |
Aug-06 |
Purch - 1sts |
52.28% |
51.52% |
50.78% |
55.02% |
57.94% |
60.36% |
63.04% |
60.71% |
60.12% |
63.89% |
60.77% |
61.00% |
64.31% |
59.81% |
59.20% |
61.92% |
60.28% |
53.30% |
52.06% |
49.89% |
48.56% |
FICO Purch - 1sts |
649.00 |
648.40 |
647.80 |
649.30 |
651.70 |
652.90 |
652.20 |
652.40 |
652.00 |
654.20 |
651.60 |
648.10 |
650.80 |
649.50 |
651.10 |
647.70 |
648.00 |
652.00 |
653.00 |
657.00 |
656.00 |
Purch - 2nds |
83.67% |
83.68% |
81.46% |
85.50% |
86.17% |
87.01% |
90.11% |
90.17% |
88.90% |
91.89% |
89.38% |
87.67% |
89.46% |
88.15% |
87.08% |
87.86% |
87.83% |
84.85% |
84.35% |
81.91% |
81.67% |
FICO Purch - 2nds |
656.5 |
656.00 |
655.00 |
655.50 |
657.90 |
659.30 |
659.00 |
657.30 |
660.00 |
659.30 |
657.80 |
655.00 |
661.40 |
661.10 |
661.70 |
659.20 |
658.00 |
662.00 |
658.00 |
662.00 |
659.00 |
Cashout - 1sts |
43.96% |
44.58% |
45.18% |
41.69% |
38.75% |
36.38% |
34.07% |
36.35% |
37.05% |
33.41% |
36.07% |
35.52% |
32.00% |
35.98% |
36.84% |
34.46% |
35.94% |
42.43% |
43.59% |
44.25% |
43.99% |
FICO Cashout - 1sts |
609.70 |
609.10 |
607.00 |
607.60 |
611.80 |
610.70 |
607.60 |
609.40 |
609.40 |
609.90 |
607.90 |
607.30 |
603.40 |
601.60 |
604.50 |
607.20 |
611.00 |
617.00 |
615.00 |
618.00 |
619.00 |
Cashout - 2nds |
15.13% |
14.99% |
17.50% |
13.79% |
13.22% |
12.20% |
9.13% |
9.08% |
10.49% |
7.51% |
10.04% |
11.52% |
10.07% |
11.33% |
12.42% |
11.63% |
11.40% |
14.27% |
14.50% |
14.10% |
10.78% |
FICO Cashout - 2nds |
639.4 |
641.90 |
640.60 |
637.90 |
643.70 |
644.20 |
642.20 |
646.00 |
645.70 |
669.60 |
644.70 |
640.00 |
645.90 |
647.00 |
644.80 |
650.90 |
646.00 |
648.00 |
650.00 |
652.00 |
653.00 |
Refi (no cashout) - 1sts |
3.76% |
3.90% |
4.04% |
3.29% |
3.31% |
3.27% |
2.89% |
2.93% |
2.82% |
2.71% |
3.17% |
3.48% |
3.69% |
4.21% |
3.96% |
3.63% |
3.78% |
4.26% |
4.35% |
5.85% |
7.45% |
FICO Refi (no cashout) - 1sts |
605.6 |
602.80 |
597.80 |
596.10 |
607.90 |
606.30 |
609.70 |
608.70 |
610.50 |
611.30 |
612.10 |
603.20 |
603.90 |
607.00 |
610.30 |
606.10 |
620.00 |
616.00 |
609.00 |
621.00 |
634.00 |
Refi (no cashout) - 2nds |
1.20% |
1.33% |
1.04% |
0.71% |
0.60% |
0.79% |
0.77% |
0.76% |
0.61% |
0.60% |
0.58% |
0.81% |
0.48% |
0.52% |
0.50% |
0.51% |
0.77% |
0.88% |
1.16% |
3.99% |
7.55% |
FICO Refi (no cashout) - 2nds |
640 |
639.5 |
638.6 |
629.5 |
649.2 |
631.7 |
641.3 |
627 |
650 |
624.2 |
635.3 |
632.8 |
637.4 |
646.9 |
643.7 |
640.4 |
640 |
650 |
644 |
644 |
647 |
Slide 23
Higher Average FICOs for loans to investors
Owner Occupied 1sts % and FICO Score
Dec-04 |
Jan-05 |
Feb-05 |
Mar-05 |
Apr-05 |
May-05 |
Jun-05 |
Jul-05 |
Aug-05 |
Sep-05 |
Oct-05 |
Nov-05 |
Dec-05 |
Jan-06 |
Feb-06 |
Mar-06 |
Apr-06 |
May-06 |
Jun-06 |
Jul-06 |
Aug-06 |
||
Owner Occ - 1sts |
88.72% |
87.60% |
87.12% |
87.78% |
88.14% |
89.32% |
89.22% |
89.42% |
88.95% |
88.68% |
89.02% |
88.94% |
89.26% |
88.27% |
88.47% |
89.24% |
91.15% |
90.81% |
90.92% |
90.13% |
89.47% |
|
FICO OO - 1sts |
626.90 |
625.70 |
623.40 |
626.80 |
631.80 |
633.10 |
633.20 |
632.90 |
632.30 |
635.30 |
632.50 |
630.00 |
632.10 |
628.20 |
630.30 |
630.40 |
631.00 |
633.00 |
633.00 |
635.00 |
636.00 |
|
|
|
|
|
|
|
|
|
|||||||||||||||
Nonowner Occ - 1sts |
10.10% |
11.41% |
11.63% |
10.94% |
10.59% |
9.45% |
9.36% |
9.08% |
9.83% |
10.32% |
10.06% |
9.74% |
9.51% |
10.27% |
9.89% |
9.59% |
7.37% |
7.86% |
7.73% |
8.24% |
8.73% |
|
FICO NOO - 1sts |
654.20 |
655.00 |
654.90 |
654.30 |
657.10 |
660.20 |
658.80 |
657.00 |
657.40 |
657.50 |
650.80 |
650.10 |
650.20 |
646.50 |
648.80 |
647.50 |
661.00 |
667.00 |
663.00 |
669.00 |
664.00 |
|
|
|
|
|
|
|
|
|
|||||||||||||||
2nd Home - 1sts |
1.18% |
0.99% |
1.25% |
1.29% |
1.27% |
1.23% |
1.43% |
1.50% |
1.22% |
1.01% |
0.93% |
1.32% |
1.24% |
1.47% |
1.65% |
1.17% |
1.49% |
1.34% |
1.35% |
1.63% |
1.80% |
|
FICO 2nd Home - 1sts |
665.3 |
636.50 |
644.70 |
654.80 |
658.60 |
656.80 |
646.20 |
661.30 |
655.70 |
702.60 |
654.80 |
633.70 |
641.20 |
652.60 |
638.70 |
646.70 |
653.00 |
642.00 |
635.00 |
640.00 |
644.00 |
Nonowner 1sts % and FICO Score
|
Dec-04 |
Jan-05 |
Feb-05 |
Mar-05 |
Apr-05 |
May-05 |
Jun-05 |
Jul-05 |
Aug-05 |
Sep-05 |
Oct-05 |
Nov-05 |
Dec-05 |
Jan-06 |
Feb-06 |
Mar-06 |
Apr-06 |
May-06 |
Jun-06 |
Jul-06 |
Aug-06 |
Owner Occ - 1sts |
88.72% |
87.60% |
87.12% |
87.78% |
88.14% |
89.32% |
89.22% |
89.42% |
88.95% |
88.68% |
89.02% |
88.94% |
89.26% |
88.27% |
88.47% |
89.24% |
91.15% |
90.81% |
90.92% |
90.13% |
89.47% |
FICO OO - 1sts |
626.90 |
625.70 |
623.40 |
626.80 |
631.80 |
633.10 |
633.20 |
632.90 |
632.30 |
635.30 |
632.50 |
630.00 |
632.10 |
628.20 |
630.30 |
630.40 |
631.00 |
633.00 |
633.00 |
635.00 |
636.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonowner Occ - 1sts |
10.10% |
11.41% |
11.63% |
10.94% |
10.59% |
9.45% |
9.36% |
9.08% |
9.83% |
10.32% |
10.06% |
9.74% |
9.51% |
10.27% |
9.89% |
9.59% |
7.37% |
7.86% |
7.73% |
8.24% |
8.73% |
FICO NOO - 1sts |
654.20 |
655.00 |
654.90 |
654.30 |
657.10 |
660.20 |
658.80 |
657.00 |
657.40 |
657.50 |
650.80 |
650.10 |
650.20 |
646.50 |
648.80 |
647.50 |
661.00 |
667.00 |
663.00 |
669.00 |
664.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2nd Home - 1sts |
1.18% |
0.99% |
1.25% |
1.29% |
1.27% |
1.23% |
1.43% |
1.50% |
1.22% |
1.01% |
0.93% |
1.32% |
1.24% |
1.47% |
1.65% |
1.17% |
1.49% |
1.34% |
1.35% |
1.63% |
1.80% |
FICO 2nd Home - 1sts |
665.3 |
636.50 |
644.70 |
654.80 |
658.60 |
656.80 |
646.20 |
661.30 |
655.70 |
702.60 |
654.80 |
633.70 |
641.20 |
652.60 |
638.70 |
646.70 |
653.00 |
642.00 |
635.00 |
640.00 |
644.00 |
2nd Home 1sts % and FICO Score
|
Dec-04 |
Jan-05 |
Feb-05 |
Mar-05 |
Apr-05 |
May-05 |
Jun-05 |
Jul-05 |
Aug-05 |
Sep-05 |
Oct-05 |
Nov-05 |
Dec-05 |
Jan-06 |
Feb-06 |
Mar-06 |
Apr-06 |
May-06 |
Jun-06 |
Jul-06 |
Aug-06 |
Owner Occ - 1sts |
88.72% |
87.60% |
87.12% |
87.78% |
88.14% |
89.32% |
89.22% |
89.42% |
88.95% |
88.68% |
89.02% |
88.94% |
89.26% |
88.27% |
88.47% |
89.24% |
91.15% |
90.81% |
90.92% |
90.13% |
89.47% |
FICO OO - 1sts |
626.90 |
625.70 |
623.40 |
626.80 |
631.80 |
633.10 |
633.20 |
632.90 |
632.30 |
635.30 |
632.50 |
630.00 |
632.10 |
628.20 |
630.30 |
630.40 |
631.00 |
633.00 |
633.00 |
635.00 |
636.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonowner Occ - 1sts |
10.10% |
11.41% |
11.63% |
10.94% |
10.59% |
9.45% |
9.36% |
9.08% |
9.83% |
10.32% |
10.06% |
9.74% |
9.51% |
10.27% |
9.89% |
9.59% |
7.37% |
7.86% |
7.73% |
8.24% |
8.73% |
FICO NOO - 1sts |
654.20 |
655.00 |
654.90 |
654.30 |
657.10 |
660.20 |
658.80 |
657.00 |
657.40 |
657.50 |
650.80 |
650.10 |
650.20 |
646.50 |
648.80 |
647.50 |
661.00 |
667.00 |
663.00 |
669.00 |
664.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2nd Home - 1sts |
1.18% |
0.99% |
1.25% |
1.29% |
1.27% |
1.23% |
1.43% |
1.50% |
1.22% |
1.01% |
0.93% |
1.32% |
1.24% |
1.47% |
1.65% |
1.17% |
1.49% |
1.34% |
1.35% |
1.63% |
1.80% |
FICO 2nd Home - 1sts |
665.3 |
636.50 |
644.70 |
654.80 |
658.60 |
656.80 |
646.20 |
661.30 |
655.70 |
702.60 |
654.80 |
633.70 |
641.20 |
652.60 |
638.70 |
646.70 |
653.00 |
642.00 |
635.00 |
640.00 |
644.00 |
Slide 24
Risk Management – Appraisal Review
100% appraisal review by Long Beach
Mortgage underwriters
100% appraisal review to Washington Mutual
standards
OptisValue System is WMB’s rules-based system
and checks eligibility of 100% of appraisals
CoreLogic’s HistoryPro and
ThirdParty Scorecard are used on 100% of properties to reduce the risk of fraud
HistoryPro calculates
an f-score (0 – 25) that represents the likelihood of flipping
Score 0: appraisal review
complete
Score 1 – 3:
CoreLogic’s AVMSelect used to verify value
– 15 AVM vendors tested on > 44,000
properties purchased Q4 2005
– Top 5 vendors assigned by
county
– Choice of vendor based on accuracy and
hit rate of AVM
– Verification annually
– AVM value triggers technical review if
< 85% or > 120% of appraisal
• Score 4 – 25: Appraisal sent
to vendor management company for a technical review
ThirdParty Scorecardcalculates a score (0 – 25) that represents the likelihood the broker is committing collateral fraud; scores > 5 require vendor management company to complete a technical review
Technical reviews performed by eAppraiseIT
(First American) and LSI (Fidelity)
1. Certified or licensed appraisers perform desktop or
driveby review on about 30% of appraisals
2. Currently, each vendor assigned half of all reviews
for each geographic area
3. Eventually, choice will be based on review quality,
valuation accuracy and speed
Loans underwritten using lower of
appraised or revised value (0% tolerance)
Slide 25
Significant portion of appraisals reviewed by an appraiser
|
Wamu Prime Wholesale |
Long Beach |
% Appraiser Review - Administrative |
14% |
12% |
% Appraiser Reviewed - Technical |
18% |
28% |
% Approved without Appraiser Review |
69% |
60% |
|
|
Wamu Prime Wholesale |
Long Beach |
|
|
% Appraiser Review - Administrative |
14% |
12% |
|
|
% Appraiser Reviewed - Technical |
18% |
28% |
|
|
% Approved without Appraiser Review |
69% |
60% |
|
Slide 26
Strong Compliance Culture
Compliance reporting lines are independent of business units
LBM compliance officers dedicated to loan fulfillment centers
High cost calculations automated in the loan origination system and prohibit approval of high cost loans
100% of loans are reviewed for, among other things, compliance with key consumer regulations prior to funding
100% of refinance loans must pass a net tangible benefits test
ü Corporate Compliance Risk reviews a sample of closed loans every month for compliance by loan fulfillment center and the grades are part of the loan fulfillment center’s Key Performance Indicators
Slide 27
Subprime Mortgage Conduit
Slide 28
WaMu Subprime Conduit Strategy
Create a business model that is focused on long-term, stable income growth rather than short-term cash proceeds
Unlike some Wall Street conduits, WaMu’s conduit has significant “skin in the game”
Opportunistically add loans to WaMu’s balance sheet
Develop strong, lasting partnerships with sellers
Focused on middle market subprime lenders (net worth ≈ $5MM on average)
WaMu can provide warehouse funding, takeout, deposit services, etc.
Implement strong risk management systems
Accurate credit risk assessment
Ongoing risk management and feedback to acquisition and credit risk teams
Goal is stable and consistent loan performance
Employ “best in class” servicing tools and techniques
Washington Mutual sells servicing retained and affiliates retain residual ownership
Goal is to attain superior performance given credit quality
Ongoing performance feedback to acquisition and credit risk teams
Create strong relationships with investor partners
Transparency is a key goal
Slide 29
Risk Management – Sellers
Seller due diligence focused on developing a long-term profitable relationship
Thorough review of business and lending practices, underwriting philosophy and guidelines
Comparison to industry standards
Focus on prudent risk management of seller
Limit exposure to predatory lending and full compliance with consumer regulations
Review historical performance and compare to industry norms
Net worth ≈ $5MM on average
Sellers have room to grow their businesses but are not too big to control
WaMu can provide full menu of banking services
Ongoing “Deep Dive” seller performance monitoring using proprietary risk management models
Focus on credit and churning
Performance vs. expectations
Performance vs. other WaMu partners
Performance vs. industry
Seller reps/warrants strictly enforced
Slide 30
Risk Management – Mortgages
Extensive use of models drives performance expectations
Models are constantly re-calibrated to incorporate recent performance history
Clearly established minimum standards
Credit standards reviewed and approved by Washington Mutual Credit Policy Committee
Seller pools are filtered to so that loans meet minimum standards prior to due diligence
NO FICO < 500
MAX LTV/CLTV 100
NO High-risk property types: MH, 5+ units, condotels, coops, time shares
Significant level of loan level due diligence by third-party due diligence firms
100% complete re-underwrite on pools purchased from new sellers
25% - 100% complete re-underwrite for repeat sellers
100% - validation of appraisal using third-party appraisal valuation product
20% - 100% appraisals reviewed using appraiser drive-by review
100% collateral file review by custodian
100% review for consumer compliance
100% review for predatory practices: flipping, equity stripping, fraud
Washington Mutual management reviews all due diligence decisions by third-parties
Slide 31
Collateral profile of conduit channel
Transaction Aggregate
2006-HE1 2006-HE2 2006-HE3 2006-HE4
Closing Date Apr 20, 2006
May 25, 2006 Sep 29, 2006 Oct 27, 2006
Pool Size $ 1,272,485,636 $
389,194,677 $ 472,002,321 $ 411,288,638 $
291,043,919
Loan Type 2nd Lien % 4% 3%
6% 4% 5%
Adjustable Rate Mortgages 82% 84%
86% 76% 86%
Interest Only Loans 25% 35% 21%
20% 12%
40 Year Amortization 17% 2% 18%
32% 0%
Piggyback 1sts 37% 42% 41% 27% 0%
Coupon Weighted Average Coupon 7.97% 7.38% 8.30% 8.16% 8.50%
ARM Gross Margin 5.80% 5.69% 6.08% 5.60% 6.42%
Loan Size Average Loan Size $ 203,451 $
208,039 $ 183,018 $ 222,559 $ 155,389
Loans < $50,000 1%
1% 2% 1% 2%
Loans > $500,000 13% 13% 12%
14% 6%
Borrower Quality FICO 627 635 625
623 631
FICO < 600 30%
24% 31% 35% 26%
0x30 Mortgage/Rent History 79% 79% 79%
79% 0%
| Debt to Income Ratio 42% 41% 42%
42% 42%
DTI > 55% 1% 0%
2% 0% 0%
Loan-to-Value Original Loan to Value Ratio 80% 79% 81% 80% 83%
OLTV > 80% 32%
29% 30% 37% 32%
Combined Loan to Value Ratio 87% 87% 89% 84%
92%
CLTV > 80% 67%
69% 70% 60% 78%
Documentation Full Documentation 50% 45% 54% 51% 50%
Stated Income 45% 49% 43% 45%
26%
Property Owner Occupied 95% 96%
96% 93% 94%
SFR + PUD 88% 94% 88%
84% 88%
California 38% 40%
37% 39% 17%
Purpose Cashout 53% 48%
45% 65% 37%
Purchase 42% 47%
51% 27% 58%
Slide 32
Subprime Servicing
Slide 33
Servicing Default Management Organization
Steve Champney SVP National Default Ed Bach National Mgr Collections & Subprime Loss Mit Ann Thorn National Mgr Asset Recovery Ken Bartell National Mgr FRU/MIS/Budget/Call Strategy & Reporting Renee Johnson National Mgr Strategic Ops Brad Kallner National Mgr Prime Loss Mitigation Danny Lawson Senior Mgr Reserves Open National REO &Special Services Michael Goines Div. Mgr SubPrime IB/OB Beth Boulton Div. Mgr BKR/FLC Timeline Mike Wood Dept Mgr FRU/Loss Analysis Steve Solof Div. Mgr Audit Wendy Woodcock Dept Mgr Ops Support Haran Sundareasan SM II Prime REO - FL Pat Friedberg Div. Mgr SubPrime 30-89 Ann Garbis Div. Mgr BKR/FLC Splc. Loans Karen Gothard Dept Mgr Def. Reporting Open Div. Mgr Sr. Project Mgr Treana Higginbotham Dept. Mgr Workout Spec. Marilyn Sanders Asset Mgr IISP REO - TX Lisa Shepherd Div. Mgr EEPD/FPD Open Div. Mgr AR Vendor Mgmt Greg Purtee Div. Mgr Call Center Strategy Loretta Clark Dept Mgr II Communications and Emp. Morale Julie Mathis Sect. Mgr II Organ. Design Mahala Anderton Div. Mgr Prime Michele Stockdale Div. Mgr P/P & S/P Cynthia Vranesevic Mgr II MIS/Budget Open Div. Mgr Credit Risk Wendy Knafelc Dept. Mgr Spec. Projects Open Div. Mgr SubPrime IB/OB Miguel Perez Dept. Mgr SubPrime LM/Back End Chats Open Dept Mgr SubPrime LM/Front End JaxOpen
Slide 34
Management Experience
Steve Champney, Senior Vice President
National Default Management
Ed Bach
National Manager
Prime/Subprime Collections &
Subprime Loss Mitigation
Location: Jacksonville/Chatsworth
14 Years Experience
Sub-prime FDP/EDP Strategy Integration
Lisa Shepherd – 16 Years Experience
MIS/Budget - Default Technical Support
Cynthia Vranesevic – 16 Years Experience
Brad Kallner
National Manager
Prime Loss Mitigation
Location: Jacksonville
15 Years Experience
Ken Bartell
National Manager
Final Analysis, Dialer, and Default
Reporting
Location: Chatsworth/Jacksonville
21 Years Experience
Danny Lawson
FVP
Reserves
Location: Jacksonville
20 Years Experience
Ann Thorn
National Manager
Asset Recovery
Location: Chatsworth/Jacksonville
16 Years Experience
|Renee Johnson
National Manager|
Strategic Operations/REO
Location: Jacksonville
18 Years Experience
Slide 35
Servicer Ratings reflect above average ability
WMB’s Subprime Servicer Ratings:
Moody’s – “SQ2” Above Average
“Moody's ratings are based on above average collection abilities, above average loss mitigation results, above average foreclosure timeline and REO management and above average servicer stability.” Moody’s Investors Service press release July 8, 2005.
Standard & Poor’s – “Above Average”
“Servicer demonstrates very high ability, efficiency, and competence in managing mid-to-large-sized portfolios, as well as solid management experience, an acceptable track record, internal practices and policies that meet industry or regulatory standards, and a managed-portfolio performance history similar to industry averages.” Standard & Poor’s
Fitch – “RPS2” Full Approval (with Noted Strengths)
“Servicers that receive a level two (2/2+/2-) rating have demonstrated high performance in all relevant categories. In addition, the level two designations represent the servicer has specific strengths in several areas…” Fitch Ratings
Slide 36
Recent improvements in subprime servicing strategy
Simplified performance incentive plan and increased bonus potential
Developed new capacity and forecasting models to ensure appropriate staffing levels maintained
Added second site in Florida to extend hours of coverage and enhance disaster recovery
Significantly enhanced dialer usage to increase size of calling campaigns and penetration rate; utilized call blending options resulting in an increase of “Right Party Contacts” and Service Levels
Automated Default operational reports and employee dashboards
Rolled out the “BITB Service Platform” to Subprime Collections and Loss Mitigation enabling customized payment and workout plans
Automated foreclosure referral process resulting in increased consistency and efficiency
Slide 37
Improved Servicing Metrics
Outbound Call Volune
Outbound Call Volume |
1522092 |
2112006 |
2247487 |
2263762 |
2395270 |
Inbound Call Volune
Inbound Calls Volume |
55396 |
60306 |
80852 |
84248 |
87439 |
Calls in Campaign
Inbound Calls Volume |
55396 |
60306 |
80852 |
84248 |
87439 |
|
Penetration Rate
Outbound Call Volume |
1522092 |
2112006 |
2247487 |
2263762 |
2395270 |
Slide 38
Washington Mutual Overview
Slide 39
Leading Player in All Business Lines
National Rankings
Retail Banking
Total deposits and retail banking stores 6th
Debit cards outstanding 3rd
Home equity loans 5th
Bank credit card issuer1 6th
Commercial Group
Multi-family portfolio holdings 1st
Home Loans
Home lending originations and servicing2 3rd
Subprime lending3 10th
1 Nilson Report, 8/06, mid-year 2006 ranking.
2 Inside Mortgage Finance, YTD through 6/30/06 (originations), as of 6/30/06 (servicing)
3 Inside B&C Lending, YTD through 6/30/06
Slide 40
Powerful Distribution Franchise
Presence in 18 of 30 Largest Metropolitan Areas
Retail Banking and Mortgage Lending
2,225 Retail Stores in 15 States
3,924 ATMs
325 Home Loan Centers in 22 States
Wholesale, Consumer Direct and/or Long Beach Mortgage Lending in 49 States
Multi-Family Lending through 46 Offices in 17 Markets
Ask of 9/30/06
Slide 41
Asset Mix Continues to Evolve
$187 billion as of 12/31/99
Other Assets Loans Held for Sale Multi-Family and CRE Home Equity Prime Home Loans and MBS Credit Cards Subprime
7.10% 0.40% 9.80% 4.60% 75.80% 2.40%
$349 billion As of 9/30/06
Other Assets Loans Held for Sale Multi-Family and CRE Home Equity Prime Home Loans and MBS Credit Cards Subprime
63122 23637 33275 54364 145634 8807 20080
Slide 42
Management Depth Kerry Killinger Chairman and CEO 34 Years of Industry Experience Tom Casey CFO 15 Years Fay Chapman General Counsel 30 Years Steve Rotella President and COO 27 Years Ron Cathcart Chief Enterprise Risk Officer 23 Years John Woods Controller 19 Years Robert Williams Treasurer 20 Years James Corcoran President, Retail Bank 25 years Joseph Saunders President, Credit Cards 37 Years David Schneider President, Home Loans 13 Years Al Brooks President, Commercial 27 Years Deb Horvath Chief Tech. Officer 26 Years Executives shaded in yellow joined Washington Mutual after October 1, 2004
Slide 43
Strong Credit Ratings
Based on WaMu’s strong deposit base, lending franchise and financial strength
Washington Mutual, Inc. Washington Mutual Bank
Moody's S&P Fitch Moody's S&P Fitch
Senior Unsecured LT A3 A-
A A2 A A
Short Term P2
A2 F1 P1 A1 F1
Subordinated Baa1 BBB+
A- A3 A- A-
Deposit
n/a n/a n/a A2 n/r A+
Preferred Stock Baa2 BBB A-
n/r n/r n/r
Outlook
S
P S S P S
Moody's
“Ratings reflect its solid consumer deposit and mortgage franchises, with strong market shares in many different geographic markets, as well as its good earnings, sound asset quality and solid management.”1
Standard & Poor's
“WaMu’s successful and explosive de novo branch strategy targets new, high-growth markets for WaMu. This strategy has greatly improved WaMu's retail deposit profile.”2
1 Source: Moody’s, 6/16/05
2 Source: Standard and Poor’s, 6/30/05
Slide 44
Contacts
Doug Potolsky
WaMu Subprime Capital Markets
Senior Vice President
(212) 702-6961
Dave Coultas, CFA, CPA
Long Beach Mortgage
FVP, Capital Markets
(206) 302-4158
Henry Engelken, CFA
WaMu Subprime Capital Markets
FVP, Director of Investor Relations
(212) 702-6965
Long Beach Mortgage performance information: www.longbeachmortgage.com
Lead underwriter contacts:
Vincent Varca
WaMu Capital Corp.
Director
(212) 702-6931
Kevin Richmond
WaMu Capital Corp.
Subprime Trader
(212) 702-6921
This ‘FWP’ Filing | Date | Other Filings | ||
---|---|---|---|---|
Filed on: | 11/6/06 | 424B5, FWP | ||
9/30/06 | ||||
6/30/06 | ||||
5/25/06 | ||||
3/31/06 | 424B5, S-3/A | |||
7/8/05 | ||||
10/1/04 | ||||
List all Filings |