Figure 4. Description of U.S. First-Lien Conventional Mortgage Market as of 2003:Q3.

The figure shows a hierarchial set of boxes representing different mortgage types. Each box contains a brief description of the mortgage category, the number of loans in that category, and, if applicable, the percent of loans securitized. At the lowest level, we include our estimates of (1) The maximum number of loans contested by adopters and securitizers over a long period after the implementation of the proposed Basel II capital framework; and (2) The maximum number of loans contested by adopters and non-adopters over a long period after Basel II implementation.

First row:
Box 1: Total mortgages outstanding, 40.7 million (footnote 1).

Second row:
Box 1: Prime, 29.7 million
Box 2: Non-Prime, 10.8 million

Third row:
Box 1: Prime conforming, 27.5 million loans, 73.4 percent securitized (footnotes 2,3,4).
Box 2: Prime jumbo, 2.2 million loans, 32.8 percent securitizes (footnotes 2, 3, 9).
Box 3: Near prime, 5.9 million loans, 41.8 percent securitized (footnotes 2, 11).
Box 4: Subprime, 4.9 million loans, 54.5 percent securitized (footnotes 2, 14).

Fourth row:
Box 1: Prime conforming non-securitized, 7.3 million loans (footnote 5)
Box 2: Prime conforming securitized, 20.2 million loans (footnote 4)
Box 3: Prime jumbo non-securitized, 1.5 million loans (footnote 5)
Box 4: Prime jumbo securitized, 0.7 million loans (footnote 9)
Box 5: Near prime non-securitized, 3.4 million loans (footnote 5)
Box 6: Near prime securitized, 2.5 million loans (footnote 11)
Box 7: Subprime non-securitized, 2.2 million loans (footnotes 5, 8)
Box 8: Subprime securitized loans, 2.7 million loans (footnote 14)

Fifth row:
Box 1: Prime conforming non-securitized fixed-rate, 6.0 million loans, 3.0 million contestable by Basel II adopters vs. non-adopters (footnote 16)
Box 2: Prime conforming non-securitized adjustable-rate, 1.3 million loans (footnote 6)
Box 3: Prime conforming securitized fixed-rate, 18.4 million loans, 16.2 million contestable by Basel II adopters vs. securitizers (footnotes 7, 17)
Box 4: Prime conforming securitized adjustable-rate, 1.8 million loans (footnote 7)
Box 5: Prime jumbo non-securitized fixed-rate, 1.0 million loans, 0.5 million contestable by Basel II adopters vs non-adopters (footnote 8, 18)
Box 6: Prime jumbo non-securitized adjustable-rate, 0.5 million loans (footnote 8)
Box 7: Prime jumbo securitized fixed-rate, 0.5 million loans (footnote 10)
Box 8: Prime jumbo securitized adjustable-rate, 0.2 million loans (footnote 1)
Box 9: Near-prime non-securitized fixed-rate, 0.8 million loans, 0.7 million contestable by Basel II adopters vs. non-adopters (footnotes 12, 18)
Box 10: Near-prime non-securitized adjustable-rate, 2.7 million loans, (footnote 12)
Box 11: Near-prime securitized fixed-rate, 2.2 million loans, 2.0 million contestable by Basel II adopters vs securitizers (footnotes 13, 17)
Box 12: Near-prime securitized adjustable-rate, 0.3 million loans (footnote 13)
Box 13: Subprime non-securitized fixed-rate, 1.2 million loans, 0.5 million contestable by Basel II adopters vs non-adopters (footnotes 15, 18)
Box 14: Subprime non-securitized adjustable-rate, 1.1 million loans (footnote 15)
Box 15: Subprime securitized fixed-rate, 1.3 million loans, 0.6 million contestable by Basel II adopters vs securitizers (footnote 16)
Box 16: Subprime securitized adjustable-rate, 1.3 million loans (footnote 16)