Posted on: 06th Feb, 2005 07:30 pm
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:
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:
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
who are possible purchasers of mortgages
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
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
Hi i want to know more about Private Label Securities?
Check out Sam's post above to know about Private Label Securities.