Fitch Ratings

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Fitch: End of QM Patch could drive RMBS losses

Sep 25, 2019By

High loan-to-value loans could drive losses in residential mortgage backed securities as the Qualified Mortgage Patch expires, according to a new report from Fitch Ratings. The absence of the GSE backstop for mortgage insurance claims is expected to contribute to loss levels with the end of the Temporary Safe Harbor status that generally exempts Fannie Mae and Freddie Mac from liability under the Qualified Mortgage rules.