Fannie Mae and Freddie Mac Launch New Uniform Mortgage-Backed Security (UMBS)

Today, Fannie Mae and Freddie Mac begin issuing the long-awaited Uniform Mortgage-Backed Security (UMBS). The Federal Housing Finance Administration (FHFA) conceived of this new standard in its 2012 “A Strategic Plan for Enterprise Conservatorships,” which marked the start of the Single Security Initiative (the history of which is laid out in the graphic below).  RiskSpan produces FHFA’s quarterly...

Fannie May and Freddie Mac Launch Uniform Mortgage-Backed Securities (UMBS)

Mortgage Insurance and Loss Severity: Causes and Effects of Mortgage Insurance Shortfalls

This blog post is the first in a two-part series about Mortgage Insurance and Loss Severity. During the implementation of RiskSpan’s Credit Model, which enables users to estimate loan-level default, prepayment, and loss severity based on loan-level credit characteristics and macroeconomic forecasts, our team explored the many variables that affect loss severity. This series will highlight what our team discovered about Mortgage Insurance and loss severity, enabling banks to use this GSE data to benchmark their own MI recovery rates and help estimate their credit risk from MI shortfalls.