Non-bank servicer boom to disrupt RMBS

By Ryan Bolger
16 Sep 2014

Investors in non-agency mortgage bond securitizations could see payments on their notes disrupted due to servicer turnover, according to a Fitch Ratings report released on Tuesday.

Turnover among mortgage servicers is more likely now than in previous years due to the rise of non-bank mortgage servicers, according to Fitch. Non-bank servicers have less capital and shorter credit histories than banks, and are more prone to default — potentially leaving delinquencies unchecked.

“There’s been ...

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