RMBS Ratings Proposal Will Determine Insurers’ Capital Requirements

The National Association of Insurance Commissioners (NAIC) on Thursday approved a proposal to establish a new model for determining ratings of residential mortgage-backed securities (RMBS). The new model will establish ratings designations for approximately 18,000 RMBS owned by US insurers by the end of 2009. It will by extension help to determine the risk-based capital requirements of these RMBS. “Compared to the rest of financial services, the insurance industry has weathered the impact of the credit crisis extremely well,” said NAIC president and New... more»

Ginnie’s Single-Family Delinquency Rate Drops to 3.48%

The Government National Mortgage Association, Ginnie Mae, guaranteed more than $38.6bn in mortgage-backed securities (MBS) in October. In September, Ginnie reported that 3.48% of the single-family loans in its guaranteed securities were 90-plus days delinquent, down from 3.7% in August and 3.59% in December 2008. For 2009, Ginnie has provided nearly $376bn of liquidity to the secondary market, a 71.6% increase from $219bn for the same time period in 2008. Thomas Weakland, Ginnie’s executive vice president, said that Ginnie has been quick to modify and create... more»