KBRA's rating approach incorporated loan-level analysis of the mortgage pool
through its Residential Mortgage Default and Loss Model, an examination of the results from third-party loan file due diligence, cash flow modeling analysis of the transaction's payment structure, reviews of key transaction parties and an assessment of the transaction's legal structure and documentation.
100% Full Income Documentation (Positive): All loans in the mortgage pool
were underwritten to the comprehensive Appendix Q documentation standards defined by ATR, which is not typical for non-prime RMBS.
In one recent development, mortgage pool
investment entities bearing Impac's own name have replaced Llano Financing as the named plaintiff in some cases.
Dubai Having kept property lending at arm's length through the tumultuous times, Commercial Bank International (CBI) has decided to give the slowly expanding mortgage pool
According to Fitch, the outstanding Cypriot covered bonds represent e1/44.2 billion of Fitch-rated debt on aggregate, including e1/42 billion of bonds issued by Marfin under Programme I (Greek mortgage pool
), e1/41.5 bilion of covered bonds issued by Marfin under Programme II (Cypriot mortgage pool
) and e1/4700m of covered bonds issued by BoC (Greek mortgage pool
They differ from residential mortgage-backed securities (RMBS) by making the mortgage pool
a secondary guarantee, rather than the primary as it is in an RMBS programme.
For purposes of the wash sale rule (see Q 1030), a residual interest in a REMIC is treated as a security and, except as provided in regulations, such a residual interest and an interest in a "taxable mortgage pool
" are treated as substantially identical stock or securities.
is to be expected, the magnitude of the increase in the
Less than 5 percent of the underlying mortgage pool
was expected to go bad, when a Moody's analyst in 2006 first rated the risk of the security.
DeHaven also said funds from a mortgage pool
used to help finance lot sales helped pay past SID assessments, but that pool played out several years ago.
REMICs offer investors a way to minimize the "prepayment risk" inherent in a mortgage pool
. Prepayment risk arises because the mortgages in the underlying pool may be paid off sooner than anticipated.
If the lender risk account is exhausted for a particular mortgage pool
, additional losses are covered by a supplemental mortgage insurance policy, which acts as the third layer of protection.