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Category: RMBS

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Servicing capacity concerns for non-bank lenders

Fitch has revised its US RMBS servicer ratings outlooks to negative, due to evolving economic stresses and operating conditions caused by the coronavirus pandemic. Concern around servicing capacity in the US is rising as non-bank mortgage lenders come under increasing pressure, given their limited funding profiles.

“The fallout from the pandemic is likely to elevate loan delinquencies, increase advancing requirements of delinquent interest and drive staffing costs higher - even as existing servicing portfolios of performing GSE and government loans prepay more rapidly.

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