First American CoreLogic, a subsidiary of The First American Corp., released a study on Monday focusing on the fate of mortgage loans after payment resets kick-in. The study officially concluded a lack of equity combined with shocking payment resets will cause defaults on 32 percent of teaser loans, 7 percent of market-rate adjustable loans, and 12 percent of subprime loans over the next six to seven years.

New York-based Fitch Ratings remained optimistic on Monday after a study of U.S. Asset-Backed Commercial Paper (ABCP) programs indicated that the subprime-related mortgage exposure decreased sharply in the fourth quarter of 2006 when compared to the same period a year prior.

Kansas City, Missouri-based NovaStar Financial Inc., a financial company specializing in nonconforming loans, has announced a work force reduction that includes the elimination of 350 jobs. In a press statement, NovaStar Financial said the company’s servicing organization is not affected by the reduction.

Nonprime lender Accredited Home Lenders Holding Co. is breathing a sigh of relief after announcing a pending sale that will effectively offload loans funded out of its warehouse and repurchase credit facilities.

The stock shares for Santa Monica, California-based Fremont General Corp. surged on Friday when the company announced Credit Suisse has agreed to increase its line of credit to subsidiary Fremont, Investment & Loan by $1 billion.

The chairman of the U.S. Senate Banking Committee the current subprime crises will be approached in an aggressive manner. When Sen. Chris Dodd (D-Conn) made that statement on Thursday, he also announced there will be a hearing on March 22, 2007, so the Banking Committee can conduct a question and answer session with state and federal officials as well as the mortgage banking industry.

Four states in the Northeast are saying no to New Century Mortgage Corp. when it comes to generating new loans in their state. New Century Mortgage is the subsidiary of Irvine, California-based New Century Financial Corp.

ECC Capital Corp. (NYSE: ECR), a mortgage real estate investment trust investing in residential mortgage loans, was notified by NYSE regulation, Inc. that the NYSE will refrain from suspending the trading in ECC Capital Stock for two days.

Pasadena, California-based IndyMac Bancorp Inc. asked the media to distance its subsidiary IndyMac Bank from the subprime market by announcing most of its loans are not considered subprime. IndyMac has been inappropriately categorized by many media sources as a subprime lender the company said in a press release.

Four states in the Northeast are saying no to New Century Mortgage Corp. when it comes to generating new loans in their state. New Century Mortgage is the subsidiary of Irvine, California-based New Century Financial Corp.