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Non-Agency RMBS: Observation Smorgasbord

In today’s commentary, we present a smorgasbord of observations. It is important to study the data and document and share the results, as there is lots to learn from the mistakes of the past. Many of the lessons learned can help us avoid trouble in whatever product we invest in next. We caution you to be wary of using pre-crisis loan performance as a predictor of future performance. As we have seen, there are many factors that affect performance including: product types, underwriting quality, quality of appraisal, changes in interest rates, changes in home prices, the economy, the ability to refinance, public sentiment, quality of servicing, and the proliferation of mortgage brokers. It is never easy to take historical performance and equate it to new originations as too many factors have to be held constant, some which are obvious and some which are not.

Topics in today’s commentary

  • Performance Stats: January 2015

  • Forced Placed Insurance?

  • Zip Codes with the Highest Loss Severity – 2014

  • Now you see it, Now you don’t (Razed Homes)

  • Zip Codes with the Lowest Loss Severity – 2014

  • Suspected Make Whole Payments / Losses Left in Trust

  • Time in Delinquency – by State

  • Loan Modifications: Largest P&I Payment Percentage Decrease – January 2015

  • Historical Performance at Month 36

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

#rmbsperformance #ForcedPlacedInsurance #HighestLossSeverity #RazedHomes #LowestLossSeverity #LoanModifications #HistoricalPerformance

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