Credit shortages in parts of the market such as the jumbo sector are a strong argument for finding a way to make private-label securitizationeconomically viable again, a panelist told attendees at a securities conference in New York.
When asked by securitization panel discussion moderator Edward E. Gainor, partner, Bingham McCutchen LP, if securitization is "still worth it," Laurie Goodman, senior managing director at Amherst Securities Group, told attendees at a Securities Industry and Financial Markets Association meeting that without it certain sectors of the market will not have sufficient credit.
Prime jumbo credit availability, for example, is "just not there," she said.
Private-label securitization is still "not economical" at this time due to government rules taking shape in combination with accounting changes and capitalization requirements, she told National Mortgage News at SIFMA's meeting on regulatory reform. Until it is, credit shortages could continue to be a concern.
