The uniformity once seen across rating services in their assessments of specific tranches of residential MBS has become a lot less common in recent years. The trend prompted Fitch Ratings to raise concerns about “rating inflation,” as competitors have at times been more lenient in their assessments.
Another piece of the regulatory jigsaw puzzle fell into place this week for the complex effort to create a uniform MBS for Fannie Mae and Freddie Mac to issue in the to-be-announced market.
Fannie Mae and Freddie Mac continued to report declining balances in their retained mortgage portfolios during the second quarter – with a few wrinkles. [Includes one chart.]