{"id":137387,"date":"2010-01-04T19:21:09","date_gmt":"2010-01-05T00:21:09","guid":{"rendered":"http:\/\/mortgagenewsclips.com\/2010\/01\/04\/scratch-and-dent-thoughts-from-nom-de-plumber\/"},"modified":"2010-01-04T19:21:09","modified_gmt":"2010-01-05T00:21:09","slug":"scratch-and-dent-thoughts-from-nom-de-plumber","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/137387","title":{"rendered":"Scratch and Dent Thoughts from Nom De Plumber"},"content":{"rendered":"

 <\/p>\n

First read this.<\/p>\n

Scratch(ed) and Dent(ed) RMBS –<\/strong> Posted by Tracy Alloway – Here\u2019s something that might have escaped your radar during Christmas week \u2014 a mass downgrade of so-called `Scratch and Dent\u2019 RMBS deals by ratings agency Fitch<\/strong> – FT Alphaville<\/a><\/p>\n

Here are additional thoughts from MNC reader, Nom De Plumber … <\/strong><\/p>\n

Implications, especially for whole-loan portfolios:<\/strong><\/p>\n

1.  Seasoned cohorts have been converging with newer cohorts, as negative equity and strategic borrower behavior trump all.   <\/strong><\/p>\n

2.  Seasoned mortgages are really just failed extensions\/modifications.<\/strong><\/p>\n

3.  Cure rates for even seasoned mortgages will continue to decline – meaning that 30-day delinquencies are increasingly just inevitable defaults.<\/strong><\/p>\n

4.  Historical roll-rate default modeling is an insufficient credit predictor, as economic policies create incentives for borrowers to game for cheap or free home usage.<\/strong><\/p>\n

5.  Scratch-and-dent loans should be priced heuristically per observable severities, not econometric projections of eventual re-performance or refinancing\/sale prepayments.<\/strong><\/p>\n

Nom De Plumber is a <\/strong>Nom De Plume<\/strong><\/a>.<\/strong><\/p>\n

\n<\/img><\/a> <\/img><\/a> <\/img><\/a> <\/img><\/a>\n<\/div>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

  First read this. Scratch(ed) and Dent(ed) RMBS – Posted by Tracy Alloway – Here\u2019s something that might have escaped your radar during Christmas week \u2014 a mass downgrade of so-called `Scratch and Dent\u2019 RMBS deals by ratings agency Fitch – FT Alphaville Here are additional thoughts from MNC reader, Nom De Plumber … Implications, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-137387","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/137387","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=137387"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/137387\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=137387"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=137387"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=137387"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}