KBRA’s Post

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The #FederalHousingFinanceAgency on April 16 issued a notice and a request for comment related to a proposal whereby Freddie Mac could purchase single-family CES #mortgages. This report explores the proposal’s potential overlap with the existing second lien PLS market and the effects the program may have on the size and risk profile of the PLS market post-adoption. Read the full report here: https://lnkd.in/d4qYQtWm | #structuredfinance #RMBS #insightfulresearch

KBRA Released Research: FHFA Closed-End Seconds: Effect on PLS?

KBRA Released Research: FHFA Closed-End Seconds: Effect on PLS?

kbra.com

Garrett Hartzog

Over two decades in the mortgage industry

2mo

So while I can’t read the original, I did see the piece that National Mortgage News put out. One thing that needs to be considered is the potential for CRT transactions. As a result, investors who want 2nd lien credit exposure will have a product available to them that will have better originator diversification. Not sure if the report touches on that, but it’s an important counterbalance. Then, there’s also the fact that a huge portion of seconds are sitting on balance sheets. It’s not like there aren’t enough seconds to go around for investors.

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