KBRA Releases Commentary: CDFI Loan Levels in Private-Label RMBS Expected to Rise

NEW YORK--()--Kroll Bond Rating Agency (KBRA) releases its Community Development Financial Institution (CDFI) Loan Levels in Private-Label RMBS Expected to Rise commentary. The CDFI program, which dates to the mid-1990s, is taking on renewed significance as loans originated by CDFI’s are exempt from the Ability-to-Repay/Qualified Mortgage Rule issued by the Consumer Financial Protection Bureau.

Although the Rule has been in effect since January 2014, CDFI collateral has only recently attracted the attention of loan aggregators seeking to include the loans in non-Qualified Mortgage private-label securitizations. In this commentary, KBRA provides color on the nuances and potential effects of the CDFI-related collateral in PLS as well as provides a brief history and background of the CDFI program.

To view the report, please click here.

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About KBRA and KBRA Europe

KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

Contacts

Analytical:

Ed DeVito, Managing Director
(646) 731-2319
edevito@kbra.com

Jack Kahan, Senior Managing Director
(646) 731-2486
jkahan@kbra.com

Contacts

Analytical:

Ed DeVito, Managing Director
(646) 731-2319
edevito@kbra.com

Jack Kahan, Senior Managing Director
(646) 731-2486
jkahan@kbra.com