Deep MI Loses Favor in Non-Agency MBS Market in 2003 as Credit Quality Improves
February 27, 2004
Issuers of non-agency MBSs became increasingly less inclined to place “deep” private mortgage insurance coverage on their deals in 2003, as investors aggressively bid for product even without this additional credit support. According to data compiled by Inside MBS & ABS, there was only $40.1 billion of deep MI written on the huge $586.22 billion of non-agency MBSs that were issued