NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) released a research report today on non-bank capital for mortgage companies. KBRA believes that establishing reasonable financial, operational and disclosure requirements for non-banks will be beneficial for investors, consumers, and the government sponsored entities (GSEs) that guarantee most mortgages originated in the United States.
As regulators move forward with this task, KBRA believes that close attention needs to be paid to areas of risk that require adequate capital and profitability, such as lending and mortgage securitization, as opposed to areas that are more concerned with operational efficiency and compliance, such a loan servicing.
In this regard, KBRA notes that non-bank financial companies focused on the mortgage sector tend to have more capital and lower leverage ratios than do large commercial banks (shown in Table 1 in the Appendix of this report).
To view the report, please visit https://www.krollbondratings.com/show_report/1493.
About Kroll Bond Rating Agency
KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).