In a new report to its clients Morgan Stanley writes that it sees a ray of sunshine when it comes to underwriting standards. “While mortgage credit remains tight, we think it is unlikely that it will get tighter. In fact, it may ease to some extent,” the firm’s analysts write. They also believe that when all is said and done the ‘Qualified Mortgage’ and ‘Qualified Residential Mortgage’ rules mandated by Dodd-Frank may not be so onerous after all. And one last thing: this group adds that it sees “tentative signs of rebirth in the private-label RMBS market.” Of course, the pessimist in me says: what are these guys drinking, while the optimist says: let us hope.
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