The rating service’s proposal to notch ratings assigned by rival firms when assessing insurers didn’t sit well with the Justice Department, members of Congress and industry participants.
Moody’s downgraded some of the tranches in loanDepot’s outstanding warehouse financing securitizations even after the company modified the transactions’ governing documents to meet new criteria.
While investors in fix-and-flip and other business-purpose loans are taking a closer look at loan characteristics and lenders’ practices, lenders are adjusting and considering locking in longer-term financing.
S&P has proposed revisions to its criteria for judging the adequacy of risk-based capital when assessing insurers. The revision would prompt higher capital requirements for certain MBS and ABS held by insurers.
It seems that some non-QM lenders learned a valuable lesson this spring: When in doubt, hedge your production pipeline. Then again, it doesn’t apply to all loan types.
As the non-QM market works out its kinks, deal activity should pick up, despite higher interest rates. Due diligence providers like Clayton are hoping the largess comes their way.
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