DB was faulted for failing to disclose second liens on mortgages in MBS and for concealing refreshed credit scores that were worse that the credit scores disclosed to investors.
In 2016, a mere $42.93 billion of non-agency MBS were issued, down 32.5 percent from the previous year, according to a new Inside MBS & ABS ranking and analysis. It was the second-lowest annual output since 2012. The picture would look a bit brighter if Fannie Mae and Freddie Mac credit-risk transfer deals were included, as well as single-family rental securitizations, which both compete for the investors that might be interested in non-agency MBS. But the government-sponsored enterprise CRT deals are debt issues and they couldn’t be any more “agency,” while the SFR securitizations look a lot more like commercial MBS than residential MBS. The prime jumbo market hit...[Includes three data tables]
In 2016, Caliber issued three non-agency MBS deals that included prime-quality and jumbo loans, often made to borrowers described in ratings’ reports as consumers with “unblemished” credit.
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