Fitch Ratings called out other rating services for allowing credit enhancement levels that it views as inadequate on ABS from marketplace lenders. Other rating services are seen as getting more comfortable with the sector.
The trading volume was decent during April but paled in comparison to most other months this year. Meanwhile, investors are worried about the usual: declining interest rates and prepayment rates. And a new wild card has emerged: A possible rate cut by the Fed.
The industry added $30 billion to its residential MBS holdings in the first quarter, mostly in agency pass-through securities. But some of the increase resulted from a shift in reporting at a large bank.
VA is on track to implement a new servicing phase of a project that would convert the current VA Loan Electronic Reporting Interface to an end-to-end origination and servicing platform. The enhanced servicing application will go live on May 28.