Medioimages/Photodisc/Getty Images
Fitch Ratings in a recent report said it believes the Federal Housing Finance Agency's recent strategic plan for the government sponsored enterprises, which includes improved loan level reporting on securitizations, has positive potential for both agency and private label residential mortgage-backed securities.
Processing Content
The better loan level reporting and transparent servicing requirements that also are part of the plan could help attract investment from private investors, Fitch said.
"The prospect of using this platform to benchmark private label RMBS could facilitate the revival of nonagency issuance and a secondary market beyond that of the GSE product," said the ratings agency.
