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 Sam
Site Admin
Joined: 21 May 2005
Posts: 289
Location: CALIFORNIA
121.75 Dollars($)
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 Posted: Sun Feb 06, 2005 8:30 pm Post subject: Private Label MBS |
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Private Label Securities are those mortgage backed securities MBS which do not conform to the loan limits set by the Government Sponsored Enterprises (GSEs) - Freddie Mac, Fannie Mae and Ginnie Mae. They are usually pools of jumbo loans.
These MBS are issued by:
- Commercial Banks
- Private Investment banks
- Home builders
- Thrifts
They were not guaranteed by the government agencies and so were laden with risks, but today the scenario has changed. They are given an 'A' credit rating from the rating agencies only after a few measures are taken to protect the investors from the losses. These include:
- Over-collateralization
- Letters of credit
- Guarantees
- Pool insurance
Due to aggressive lending practices ,and the growth of the Alt A market and the sub-prime loans, the volume of private labels is increasing. |
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rick mcmahon
Guest
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| Posted: Thu Dec 04, 2008 1:28 pm Post subject: |
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| who are possible purchasers of mortgages |
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Niicss
Joined: 03 Oct 2005
Posts: 3255
Location: New Jersey
513.90 Dollars($)
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| Posted: Fri Dec 05, 2008 2:46 am Post subject: |
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Hi rick
As far as I know, secondary mortgage lenders are known as purchasers of mortgages. In the secondary mortgage market, mortgage loans and servicing rights are bought and sold. The mortgage originators, aggregators and investors deal with this buying and selling of mortgages. The secondary mortgage market is known to be large and liquid.
Thanks
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Good is the Enemy of Great. |
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