A study by the European Central Bank found evidence that rating services respond to their competitive environments by either inflating ratings or altering the strictness of their rating standards.
Only 4% of MBS and ABS assessed by Fitch received a positive rating impact from ESG factors. Meanwhile, S&P is set to expand its assessments in the ESG space.
S&P actually lost some market share in rating ABS issued in 2021 but remained well ahead of the competition. Moody's usurped DBRS as the top rating service in the non-agency MBS world. (Includes two data charts.)
SFVegas pushed back to July; commercial MBS delinquencies rise for first time in more than a year; Fannie obtains ratings for older CRTs; Verizon to issue more ABS tied to cellphone payment plans.
Some of Cenlar’s subservicing clients are eyeing a switch. But when it comes to securities holders whose assets are being serviced by the vendor, so far, there isn’t much to worry about.
New issuance of rated non-agency MBS was up strongly from the first to the second quarter and all five rating services upped new business. But new issuance of rated ABS was down slightly, and competition intensified. (Includes two data charts.)
While ESG factors have mattered since the 1990s, KBRA analyst Eric Thompson said questions such as whether an asset will be impacted by rising sea levels are gaining more prominence.
All five rating services saw hefty increases in their ABS business in the first quarter as total rated issuance rose 88%. But there were clear winners and losers in the non-agency MBS market.
Is Onity Group eyeing a sale? Perhaps. And why not? Servicing values are approaching a 25-year high.
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