The Case for Overhauling RMBS Rep-and-Warranties

JPMorgan may be trying to put the sins of the past behind it; however, put-back risk for the industry is alive and well despite efforts by the federal government to impose what it deems to be appropriate mortgage underwriting standards.

RMBS Comeback

What's keeping private-label RMBS investors up at night, and what could attract more capital, setting the stage for a broader recovery.

Why Former Investors Despair of Returning to RMBS

Through bitter experience, bond purchasers learned about the moral hazard embedded in private RMBS and their grossly inadequate legal protections.

RMBS Should Pool Loans from Different Originators

While Qualified Mortgage and Qualified Residential Mortgage Rules are designed to increase mortgage quality, investors must be cautious about privately issued securities in a post-GSE era where the underlying loans are subjected to a particular lender’s underwriting and sourcing processes.

Mortgage Lenders Push ARMs as Refis Plunge

As refinancing volumes plummet, lenders are trying to extend the home financing boom by pitching adjustable-rate mortgages to borrowers, harkening back to the pre-crisis boom years.