When it comes to borrowing money in the secondary market these days, mortgage servicing rights are a great form of collateral. Reason? Rates are high and the asset will stick around for a long time.
Non-QM rates are now north of 7% in many cases, but the market is still dealing with upwards of $5 billion in lower-coupon product that needs to be moved.
Non-agency MBS with mortgages originated by CDFIs faces scrutiny from rating services; The Change Company pushes back; MBS and ABS investor preferences on credit scoring models.