The concept of MSR-backed securities recently came to the fore again with the news that Stonegate Mortgage, Indianapolis, is contemplating a transaction.
Originators are constantly looking over their shoulders because loans are being re-underwritten two or three times, once by the aggregator, once by the GSEs...
Why short Altisource? This source reasons that as real estate values continue to improve and foreclosures slow, Altisource will have less to do going forward...