Residential MBS

Highlights

• 17 May 2013
  • Resi Landscape: Capacity constraints for homebuilders a risk to construction and jobs
    The capacity constraints currently facing US homebuilders pose downside risk to construction and jobs but upside risk to prices, our newsletter says. Also discussed: falling LTVs will result in higher advancement rates if servicers re-evaluate delinquent subprime loans, unreimbursed losses on aged delinquent loans in FHA/VA transactions will increase overall losses, rising home prices and active servicing lower risk in RMBS pools... Full Report
• 15 May 2013
  • Credit Insight: May edition highlights positive impact of new FCA initiative
    AThe May edition of Credit Insight discusses the credit positive impact for UK RMBS and covered bonds of the UK’s Financial Conduct Authority’s (FCA) initiative to reduce interest-only mortgage borrower risk. The FCA’s initiative, which requires lenders to prompt borrowers with interest-only mortgages maturing before 2020 to check their repayment plans, will reduce default risk. We also discuss the mixed credit implications for Spanish SME transactions of the Spanish government’s new National Housing Plan for 2013-2016 and the credit negative impact for Spanish ABS of continued regulatory uncertainty in the Spanish electricity sector on the back of high tariff deficits... Full Report
• 19 Apr 2013
  • Comment requested on revised approach to evaluating tail risk in US RMBS
    The proposed adjustments are to our monitoring approach for evaluating tail risk in pro-rata pay US residential mortgage-backed securities that do not have compensating mechanisms of support, such as credit enhancement floors or non-declining reserve funds. If implemented, it will result in ratings downgrades for about 1200 RMBS that are exposed to tail risk... Full Report