IndyMac Pursues Wide-Scale Alt-A Modifications
The chairman of the Federal Deposit Insurance Corporation, who has been calling on servicers to make more loan modifications, is putting U.S. and investor money where her mouth is.

FDIC took over troubled IndyMac Bank FSB on July 11, reopening it as IndyMac Federal Bank FSB.

Last week, IndyMac's acting Chief Executive Officer John Bovenzi issued an e-mail to employees indicating that of the 740,000 loans it services, 60,000 were at least 60 days past due.
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Fannie Halts N.Y. Subprime Purchases
Fannie Mae has followed Freddie Mac's lead on New York subprime mortgages.

Alt-A Meltdown
Ratings on Alternative-A securitizations took another pounding this week -- with downgrades hitting classes of deals as far back as 1995. Meanwhile, activity on commercial mortgage-backed securities was mixed.

Direct Mail Volume Mixed
Marketers of mortgages and home-equity loans have cut their combined direct mail advertising in half since last year, a new report indicates. But two companies drove a recent uptick for just mortgage lender activity.

Freddie to Stop Buying Some N.Y. Mortgages
A new mortgage law in New York has prompted Freddie Mac to quit buying some subprime loans in that state.

Stiffer Underwriting at Banks
A new survey from the Federal Reserve indicated more banks continued to constrict mortgage guidelines. The report indicated the number of banks that make subprime loans has fallen by more than half during the past 12 months.

Another Blow to Battered Alt-A Market
Fannie Mae, which owns or guarantees more than $300 billion in Alt-A mortgages, said such loans are responsible for a disproportionate share of its losses -- leading to its decision to halt further Alt-A purchases. The move by Fannie is just another nail in the coffin of limited-documentation programs.

2007 Vintage Performance Far Worse Than Prior Years
Alternative-A, jumbo and subprime loans securitized last year are performing far worse than loans from any issuances since at least 2001. Prime jumbo loans are seeing the worst deterioration.

Alt-A Ratings Crumble
Hundreds of Alternative-A residential mortgage-backed securities were downgraded during the past few days, though some commercial MBS saw positive activity.

Mass. Borrowers See Some Foreclosure Relief
A California-based investment fund that acquired distressed loans originated by Fremont Investment & Loan has agreed to a settlement with the Massachusetts attorney general that will help prevent foreclosure for 200 subprime borrowers. Meanwhile, monthly foreclosures in the state declined -- though the decrease may only be temporary.