Friedman Billings Ramsey released another positive report on the state of underwriting in residential mortgage loans in which its author, Michael Youngblood, FBR's head of ABS research, is sure will be controversial. Youngblood said the concept of deteriorating mortgage loan underwriting is generally unfounded and "a source of some wonderment that at least a significant part of the media world has grasped onto." (See related story p. 14).

"I never thought that Kool-Aid was this popular," Youngblood said. "I literally cannot fathom it. I would think that the uninformed are grasping at plausible but false explanations - market participants are generally dumbfounded by all of the hoopla," he added.

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