Foreclosure fears

Category: RMBS

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CFPB's new rule curtailing foreclosures complicates mortgage market

The final rule on foreclosures introduced this week by the Consumer Financial Protection Burea (CFPB) is unlikely to interrupt MBS issuance in the short term but problems likely lie round the corner, say experts.

At the moment, record refinancing are contributing to healthy MBS issuance but if rates rise - as looks likely - then refinancing will become less popular and the potentially injurious effect of the CFPB rule upon mortgage provision more relevant.

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