Secondary market investors are continuing to push for consent standards that dictate when a second lien can be added to a first mortgage, industry executives told attendees at a conference Monday morning.
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But, generally, the so-called ‘second lien problem’ is not an easy one to fix, noted Fred Matera, managing director and head of residential investments at Redwood Trust Inc. Mill Valley, Calif.
Matera said investors are stressing a need for well-underwritten mortgages. No matter what form of risk retention is required, borrower equity in the property is key, he said, speaking before a conference sponsored by the Mortgage Bankers Association.
Over the past two years Redwood Trust has been the only issuer of private label MBS.
