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KBRA Releases RMBS Trend Watch: Spotlight on Housing Finance Reform Proposals

September 19, 2018

NEW YORK--(BUSINESS WIRE)--Sep 19, 2018--Kroll Bond Rating Agency (KBRA) presents updates to issuance volume trends and forecasts, spreads, and collateral performance in this RMBS Trend Watch. We’ve also included a Spotlight Section on recent housing finance reform efforts and the potential impact to the U.S. RMBS market.

Issuance Volume: RMBS 2.0 issuance in Q3 2018 is expected to exceed $10 billion, marking the second highest post-crisis quarterly issuance and adding to a record annual volume. New Issuers: New issuers have entered the RMBS Expanded Prime and Non-Prime sectors contributing increasingly diverse collateral. Housing Finance Reform: Efforts at reform are getting attention on the tenth anniversary of the Federal Government’s takeover of Fannie Mae and Freddie Mac.

Ratings Activity

To date this quarter, KBRA has issued pre-sale reports for 13 transactions; seven Prime transactions ($2.9B) including, three Expanded Prime transactions, two Credit Risk Transfers (CRT), two Non-Prime, and two Ginnie Mae MSR securitizations. Notably, four new issuers securitized two of the Non-Prime transactions and one of the Prime and MSR securitizations, respectively.

Also to date this quarter, KBRA took surveillance rating actions on 893 outstanding ratings, including 68 upgrades, 816 affirmations, and 9 withdrawals. The rating actions spanned 25 Prime 2.0, six CRT and one Re-Performing transaction.

To view the report, please click .

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About KBRA and KBRA Europe

KBRA is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus, is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

View source version on businesswire.com:https://www.businesswire.com/news/home/20180919005524/en/

CONTACT: Analytical:

KBRA

Jack Kahan, Managing Director

(646) 731-2486

jkahan@kbra.com

or

Sharif Mahdavian, Senior Director

(646) 731-2301

smahdavian@kbra.com

or

Gary Narvaez, Director

(646) 731-2478

gnarvaez@kbra.com

or

Ryon Aguirre, Associate Director

(646) 731-2382

raguirre@kbra.com

KEYWORD: UNITED STATES NORTH AMERICA NEW YORK

INDUSTRY KEYWORD: PROFESSIONAL SERVICES BANKING FINANCE

SOURCE: Kroll Bond Rating Agency

Copyright Business Wire 2018.

PUB: 09/19/2018 11:10 AM/DISC: 09/19/2018 11:10 AM

http://www.businesswire.com/news/home/20180919005524/en

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