In many ways, 2013 has marked a turning point for residential mortgage-backed securities. For starters, new issue RMBS activity is at its highest point since 2007, according to Standard & Poor’s latest report.
They Said It
“In the dark days of the financial crisis, when commitments to AIG totaled $182 billion, few would have believed that we’d already be able to reduce that amount by more than 75%."
"We concluded principal forgiveness results in a lower net present value than principal forbearance," the text continues. So at this point, there are no plans to remodel the Home Affordable Modification Program Principal Reduction Alternative.