The MReport Webcast: Monday 10/12/2015

A diminishing private-label securitizations market among strong government-backed loans presents credit implications for the mortgage market. The Urban Institute highlights the importance of consumers knowing how the disappearance of the private-label securitizations market affects their access to credit.

If government-backed securitizations continue to dominate the market, the impact could affect credit availability for all consumers, even those with high net worth and excellent credit and those in expensive areas in need of jumbo loans. A healthy mortgage-backed securities market consists of ample money on hand for lenders to originate new loans, but today's market is nothing like this. The 718 billion dollars 2007 private-label securities market fell dramatically to 59 billion dollars in 2008, and it has not been above 64 billion dollars since then.

LoanDepot recently announced that it has officially filed a registration statement with the U.S. Securities and Exchange Commission for a proposed initial public offering. A press release from the company noted that the IPO was filed on Form S-1 with the SEC relating to its Class A common stock. LoanDepot also noted that the number of shares to be offered and the price range for the proposed offering have not yet been determined.