Powered by MOMENTUM MEDIA
subscribe to our newsletter

Moody’s updates RMBS market comparison tool

Moody’s has announced that it has updated its global residential mortgage-backed securities market comparison tool.

Moody’s Investors Service has announced that it has published its updated global residential mortgage-backed securities (RMBS) market comparison tool, which enables “comprehensive comparison” of the characteristics of active RMBS markets, including collateral characteristics, collateral loss assumptions, typical structural features, and counterparties.

According to the ratings agency, the active RMBS markets are the US with 61 transactions in 2018, followed by the UK (37) and Australia (20). Other active RMBS markets include Japan, Ireland, Italy and Spain.

The updated version of Moody’s market comparison tool includes “refreshed” securitisation performance and key market characteristics, both on collateral and structural features.

“Structural and collateral features have remained mainly unchanged over the past years however observed some regulatory changes in some of the markets and movements on the market share of the top lenders in some countries,” the Moody’s announcement states.

Advertisement
Advertisement

“Moody’s expected loss and MILAN CE assumptions have remained mostly unchanged compared to 2017.”

The ratings agency also recently announced updating its methodology for analysing risks associated with reverse mortgage securitisations.

The ratings agency now considers future movement in prices of the homes in the pool, expected mortality rates of borrowers, the likelihood of borrowers moving out of their home prior to death, and the extent to which the assets or reverse funds provide the transaction sufficient cash to make the required payments on the bonds, among other factors.

[Related: Moody’s revises analysis of reverse mortgage risks]

Moody’s updates RMBS market comparison tool

PROMOTED CONTENT


>Moody’s Investors Service has announced that it has published its updated global residential mortgage-backed securities (RMBS) market comparison tool, which enables “comprehensive comparison” of the characteristics of active RMBS markets, including collateral characteristics, collateral loss assumptions, typical structural features, and counterparties.

According to the ratings agency, the active RMBS markets are the US with 61 transactions in 2018, followed by the UK (37) and Australia (20). Other active RMBS markets include Japan, Ireland, Italy and Spain.

The updated version of Moody’s market comparison tool includes “refreshed” securitisation performance and key market characteristics, both on collateral and structural features.

“Structural and collateral features have remained mainly unchanged over the past years however observed some regulatory changes in some of the markets and movements on the market share of the top lenders in some countries,” the Moody’s announcement states.

“Moody’s expected loss and MILAN CE assumptions have remained mostly unchanged compared to 2017.”

The ratings agency also recently announced updating its methodology for analysing risks associated with reverse mortgage securitisations.

The ratings agency now considers future movement in prices of the homes in the pool, expected mortality rates of borrowers, the likelihood of borrowers moving out of their home prior to death, and the extent to which the assets or reverse funds provide the transaction sufficient cash to make the required payments on the bonds, among other factors.

[Related: Moody’s revises analysis of reverse mortgage risks]

Moody’s updates RMBS market comparison tool
mortgagebusiness

Reporter

If you have any news, ideas or enquiries for Mortgage Business - please contact This email address is being protected from spambots. You need JavaScript enabled to view it.

Latest News

The competition watchdog is set to make good on its recommendations for improving the mortgage process, and will also be announcing enforcem...

The major bank has announced cuts to fixed home loan rates of up to 55 bps, while forecasting house price growth of around 10 per cent this ...

Nearly half of all global banks want to become digital ecosystems in the wake of open banking, with incumbent banks set to benefit the most ...

FROM THE WEB

Join a group of highly informed brokers.

Broker Pulse, a community-driven knowledge base of lender performance Reveal exactly which lenders are making life easiest for brokers and their clients by taking this monthly survey and joining a group of highly informed brokers who leverage these insights every month.

JOIN NOW
podcast

LATEST PODCAST: BOQ’s acquisition of ME Bank

Do you expect to see strong uptake of the HomeBuilder scheme?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.