Mortgage loans have been a big hit among investors seeking earning collateral throughout the pandemic. But a recent report by the Kroll Bond Rating Agency, raises a yellow flag about current loan-review practices in the private-label market.
He writes: "The process of vetting loan pools assembled for private-label securitization deals is, to a degree, like sausage-making. Few take the time to understand the process, but everyone eating the sausage wants to trust that the ingredients won't cause them heartburn."
The heartburn in this case is dropped loans. "The notable increase in due-diligence sampling in 2021 has also come with an unfortunate caveat…," KBRA reports. "Some loans that are initially targeted for sampling are removed from the pool prior to the completion of review for reasons that are or may be related to loan quality."
Black Knight's executive vice president of Mortgage & Capital Markets Product Management, Julian Grey, discusses what's next across the housing industry.
Industry stakeholders and affordable housing advocates welcomed news that the Federal Housing Finance Agency's acting director, Sandra Thompson, was nominated for the permanent role.
Computershare Loan Services (CLS) drives positive outcomes for their clients' most complex portfolios. With deep roots in default servicing and loss mitigation technology, CLS is an ideal partner to help protect your revenue in a challenging environment. Keep Reading!
The FHFA on Thursday issued a proposed rule that would require Fannie Mae and Freddie Mac to develop, maintain, and submit annual capital plans to the regulator.
For those in marginalized communities, it can be much more challenging to achieve the American dream of homeownership. Here's a look at a lending technology that can help forge a pathway for underserved populations to build generational wealth through homeownership.
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