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December 2014 Remittance – Year in Review

We start the year off with a bunch of charts and graphs comparing performance statistics over the past four years. While many of the statistics point toward improving performance across all products and vintages, the morbidly delinquent percentages (4+ years since last payment) has been on the rise. These loans are notorious for producing loss severities greater than 100% for investors. Our elephant in the room analysis exploring these loans begins on page 15.

Regulatory requirements and investigations will offer no relief from this trend. Servicers may not have the time or resources to bring these loans back to life or even determine the best means to make this bad situation from getting worse for investors. Regardless, it is time for servicers to address these loans so investors can finally move away from the sins of the past.

Page 30 has an interesting analysis showing how a $1MM loan turned into a $1.48MM loss, and surprisingly, SPS was the servicer.

Contact us at 203-276-0672 to become a client and access all reports and attachments.

#morbidlydelinquentloans #nonagencyrmbsperformance #lossseverities #sps

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