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
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.
Source: Fitch Ratings
Most Popular Stories
- Shia LaBeouf Plea Deal, Alcoholism Treatment
- Stop-Start Engines Save Gas, Reduce Emissions
- Ohio State Band Chief Fired After Probe
- Hispanic Leader Goes the Extra Mile
- Ukraine Says Russians Firing Across the Border
- Ford Q2 Net Profit up 6 Percent
- Jennifer Lopez, Pitbull to Perform at Fashion Rocks
- Ricky Martin Joins 'The Voice ... Mexico'
- U.S. Weighs Refugee Status for Immigrant Kids
- Morgan Stanley Ponies Up $275 Million to Settle SEC Charges