The MReport Webcast: Wednesday 6/3/2015

Beginning on June 15, 2015, a new US Securities and Exchange Commission rule takes effect for new residential mortgage-backed securities, according to Moody’s Credit Outlook report. The rule is intended to provide transparency into the credit quality of mortgage loans underlying transactions. The rule will require issuers or underwriters of asset-backed securities that nationally recognized statistical rating organization rate to publish the findings and conclusions of any third-party review firms’ due-diligence reports on loan quality.

If the reports are consistent with what issuers provided to rating agencies previously, investors in prime jumbo RMBS will be able to view reports that include pertinent information. The reports will include credit reviews that assess the extent to which the loans in the transaction conform to the originator’s lending guidelines. It will also provide property valuation reviews that assess whether information in the loans’ files reasonably support the loans’ appraised values. Compliance reviews and data integrity reviews will also be noted in the reports.

CoreLogic released its April 2015 Home Price Index, which shows that home prices nationwide, including distressed sales, increased by 6 point 8 percent in April 2015 compared with April 2014.This rise will mark 38 months of consecutive year-over-year increases in home prices nationally. Home prices increased by 2 point 7 percent from last year, and 30 states plus the District of Columbia were at or within 10 percent of their peak prices in April.