News Column

Fitch: New Deals Still at a Crawl as Post-Crisis U.S. RMBS Remains Strong

May 8, 2014



NEW YORK--(BUSINESS WIRE)-- Link to Fitch Ratings' Report: U.S. Prime Jumbo RMBS Trends

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=748176

Post-crisis U.S RMBS collateral is still performing very well, though the pace of new issuance this year remains scarce with no near-term change likely, according to Fitch Ratings in its latest U.S. prime jumbo RMBS trends report.

Fitch reports that 48 prime RMBS deals have come to market since 2010, though only five have been completed in 2014. 'The still dominant presence of the GSEs, rising mortgage rates and challenging securitization incentives are constraining new prime jumbo RMBS issuance,' said Managing Director Grant Bailey.

This comes as post-crisis RMBS deals are still showing strong credit characteristics. 'Recent prime jumbo vintages are exhibiting even stronger attributes than those securitized prior to 2005, long considered a benchmark for traditional prime lending,' said Bailey. For instance, post-crisis RMBS contain higher FICO scores (771), lower combined loan-to-value ratios (68% versus 70%) and more loans that are fully documented (100% versus 64%) than deals that came to market prior to 2005.

'U.S. Prime Jumbo RMBS Trends' is available at www.fitchratings.com or by clicking on the above link.

Additional information is available at www.fitchratings.com.

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.



Fitch Ratings

Grant Bailey, +1-212-908-0544

Managing Director

Fitch Ratings, 33 Whitehall Street, New York, NY 10004

or

Ryan O'Loughlin, +1-212-908-0387

Analyst

or

Media Relations

Sandro Scenga, +1-212-908-0278

sandro.scenga@fitchratings.com

Source: Fitch Ratings


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