Coruscation

For the purposes of this survey, please use the following definitions
of these loan categories (note that the loan categories are not mutually
exclusive) and include first-lien loans only:

The prime category of residential mortgages includes loans made
to borrowers that typically has relatively strong, well-documented credit
histories, relatively high credit scores, and relatively low debt-to-income
ratios at the time of origination. This would include fully amortizing loans
that have a fixed rate, a standard adjustable rate, or a common hybrid
adjustable rate--those for which the interest rate is initially fixed for a
multi-year period and subsequently adjusts more frequently.

The nontraditional category of residential mortgages includes, but
is not limited to, adjustable-rate mortgages with multiple payment options,
interest-only mortgages, and "Alt-A'' products such as mortgages with
limited income verification and mortgages secured by non-owner-occupied
properties. (Please exclude standard adjustable-rate mortgages and
common hybrid adjustable-rate mortgages.)

The subprime category of residential mortgages typically includes
loans made to borrowers that displayed one or more of the following
characteristics at the time of origination: weakened credit histories
that include payment delinquencies, chargeoffs, judgments, and/or
bankruptcies; reduced repayment capacity as measured by credit
scores or debt-to-income ratios; or incomplete credit histories. prime
category of residential mortgages includes loans made to borrowers
that typically had relatively strong, well-documented credit histories,
relatively high credit scores, and relatively low debt-to-income ratios
at the time of origination. This would include fully amortizing loans that
have a fixed rate, a standard adjustable rate, or a common hybrid
adjustable rate--those for which the interest rate is initially fixed for
a multi-year period and subsequently adjusts more frequently.