PT  - JOURNAL ARTICLE
AU  - Steve Banerjee
AU  - Laurent Gauthier
AU  - Weisi Tan
AU  - Drew Zhu
TI  - A Study of RASC Subprime Loan Prepayments, Delinquencies, and Losses
AID  - 10.3905/jfi.2000.319278
DP  - 2000 Dec 31
TA  - The Journal of Fixed Income
PG  - 47--67
VI  - 10
IP  - 3
4099  - https://pm-research.com/content/10/3/47.short
4100  - https://pm-research.com/content/10/3/47.full
AB  - Subprime first-lien mortgages are securitized through the residential assets securities corporation. While they manifest differences with respect to loan age, credit grade, loan-to-value ratio, and vintage, both fixed-rate and adjustable-rate rasc mortgages exhibit positive convexity similar to that of the rest of the subprime market. There is some flexibility built into the credit underwriting guidelines through compensating factors related to (for example) delinquency versus debt-to-income ratios. This article describes collateral and performance differences in detail.