1 minute readRedwood Trust’s new residential mortgage-backed security may have failed to get top ratings from Standard & Poor’s, based on characteristics of underlying loans, according to an investor and a statement released by S&P on Wednesday. The Redwood loans deviated from an “archetypical” pool that S&P uses to benchmark its RMBS ratings. Variations on the archetypical pool include that the loans have adjustable rates and that just 26% are fully amortizing. Credit enhancement for bonds that meet S&P’s archetypical pool begin at 7.5%, the rating company said. The Redwood deal, rated triple-A by Moody’s Investors Service, had credit enhancement of 6.5%.
Diana Golobay was a reporter with HousingWire through mid-2010, providing wide-ranging coverage of the U.S. financial crisis. She has since moved onto other roles as a writer and editor.see full bio
Most Popular Articles
Latest Articles
Test
The story for the housing market over the past three years has been, “Home sales are down, home prices are up.” Because inventory was so restricted after the pandemic, prices pushed higher even as demand weakened. That story may finally be inverting as unsold inventory of homes is now great enough that home prices are […]
-
Freddie Mac’s Donna Spencer on their Servicing Excellence initiative
-
Lower mortgage rates attracting more homebuyers
-
Rocket Pro TPO raises conforming loan limit to $802,650 ahead of FHFA’s decision
-
Show up, don’t show off: Laura O’Connor is redefining success in real estate
-
Between the lines: Understanding the nuances of the NAR settlement
Diana Golobay was a reporter with HousingWire through mid-2010, providing wide-ranging coverage of the U.S. financial crisis. She has since moved onto other roles as a writer and editor.see full bio