KBRA Releases Research – Will Tough Times for Mortgage Originators Hurt RMBS Performance?


NEW YORK–(BUSINESS WIRE)–KBRA Releases Report Examining the Current Volatile Operating Environment for Mortgage Originators, Including Rising Interest Rates, Persistent Inflation and Record Home Prices, and the Potential Implications for Mortgage Performance RMBS.

The report discusses how the RMBS market may be impacted by factors such as lender liquidity and financial viability, and what impact post-crisis RMBS improvements could have on expected results. KBRA concludes that despite the risks in the current operating environment, securitizations are generally insulated from financial market issues and a given originator’s capital to the extent that the loan-making process itself is not not implied as substandard. In fact, we don’t generally expect originations over the past two years to have significant loan-making issues, even from entities with financial or liquidity difficulties.

Click here to see the report.

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About KBRA

KBRA is a full-service credit rating agency registered in the US, EU and UK, and is appointed to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in several jurisdictions.


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