CRT Deal Monitor: March 2019 Update

CRT Deal Monitor: Understanding When Credit Becomes Risky  This analysis tracks several metrics related to deal performance and credit profile, putting them into a historical context by comparing the same metrics for recent-vintage deals against those of ‘similar’ cohorts in the time leading up to the 2008 housing crisis.   Some of the charts in this post have interactive features, so click around! We’ll be tweaking the analysis and adding new metrics in subsequent months. Please shoot us an email if you have an idea for other...ShareTweetShare

RiskSpan Edge & CRT Data

For participants in the credit risk transfer (CRT) market, managing the massive quantity of data to produce clear insights into deal performance can be difficult and demanding on legacy systems. Complete analysis of the deals involves bringing together historical data, predictive models, and deal cash flow logic, often leading to a complex workflow in multiple… ShareTweetShare

Fannie Mae’s New CAS REMIC: Why REITs Are Suddenly Interested in CRT Deals

Fannie Mae has been issuing credit-risk-transfer (CRT) deals under its Connecticut Avenue Securities (CAS) program since 2013. The investor base for these securities has traditionally been a diverse group of asset managers, hedge funds, private equity firms, and insurance companies. The deals had been largely ignored by Real Estate Investment Trusts (REITs), however. The following… ShareTweetShare

REITs

CRT Deal Monitor: November 2018 Update

RiskSpan’s CRT Deal Monitor tracks several metrics related to deal performance and credit profile, putting them into a historical context by comparing the same metrics for recent-vintage deals against those of ‘similar’ cohorts in the time leading up to the 2008 housing crisis. The analysis depicts visually how credit metrics are trending today and shows… ShareTweetShare

A Primer on HECM Loans

In September, RiskSpan announced the addition of Ginnie Mae’s loan-level Home Equity Conversion Mortgage (“HECM”) dataset to the Edge platform. The dataset contains over 330,000 HECM loans with origination dates from 2000 to 2018 and reporting periods from August 2013 to October 2018.   This post is a primer on HECM loans, the HMBS securities they collateralize, and the structure of the new dataset.  What is a HECM?  HECMs are FHA-insured reverse mortgages that provide people 62 and older with cash payments or a line of credit… ShareTweetShare

CRT Deal Monitor: October 2018 Update

RiskSpan’s CRT Deal Monitor tracks several metrics related to deal performance and credit profile, putting them into a historical context by comparing the same metrics for recent-vintage deals against those of ‘similar’ cohorts in the time leading up to the 2008 housing crisis. The analysis depicts visually how credit metrics are trending today and shows… ShareTweetShare

RiskSpan VQI: Current Underwriting Standards – September 2018

VQI held steady for the September at 99.31 compared to 99.43 in August. There was a small increase in proportion of loans made made for cash-out refinance. However, there was a slight reduction in loans made to Investors which offset the increase. VQI below 100 indicates stricter underwriting standards compared to January 2003. RiskSpan introduced the VQI in 2015 as a… ShareTweetShare