It may not be time to panic yet, but investors are starting to buy riskier mortgage bonds. Homeowners whose mortgages get packaged into so-called credit risk transfer securities (CRTs) have lower credit scores and higher debt levels than they did in recent years, Bloomberg reported. CRTs, like traditional mortgage-backed securities, are issued by Fannie Mae and Freddie Mac, the government-sponsored mortgage giants. But unlike traditional housing bonds, CRTs aren’t fully guaranteed by the federal government. […]
source https://therealdeal.com/2018/05/16/mortgage-bonds-are-getting-riskier/
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