Fitch RMBS Newsletter Highlights Deep Primary Mortgage Insurance.Business EditorsNEW YORK--(BUSINESS WIRE)--Jan. 22, 2001 The use of deep primary mortgage insurance in subprime home equity asset-backed securitizations, as well as in traditional and alternative A quality mortgage- backed securitizations, has emerged as an economically efficient supplement to structural enhancement mechanisms, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the international rating agency Fitch fitch: see polecat. . In an article appearing in the latest edition of the 'RMBS Mortgage Principles and Interest' residential mortgage-backed securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. (RMBS RMBS Residential Mortgage-Backed Securities RMBS Rambus, Inc. (NASDAQ stock symbol) RMBS Russian Mortgage-Backed Securities ) newsletter, Fitch notes that the agency has seen an increased interest in using mortgage insurance as credit support, particularly over the last six months. 'Unlike the pool insurance policies popular in the last two decades, deep primary mortgage insurance is effectively a series of individual loan policies that provide loss coverage at higher, or deeper levels than that mandated by the government- sponsored enterprise,' said Kenneth Higgins, senior director, Fitch. 'This deeper mortgage insurance can substantially reduce the need for additional credit enhancements Credit Enhancement A method whereby a company attempts to improve its debt or credit worthiness. Notes: Credit enhancements take many different forms. An example of a credit enhancement would be conversion rights added on to a debt instrument in order to lower the issuing , such as excess spread, overcollateralization, or subordination.' In addition to the mortgage insurance analysis, the latest edition of the 'RMBS Mortgage Principles and Interest' newsletter includes a year-end review and outlook for the RMBS market as a whole and for residential loan servicers  This article or section is in need of attention from an expert on the subject.Please help recruit one or [ improve this article] yourself. See the talk page for details. in particular. The 'RMBS Mortgage Principles and Interest' newsletter is a quarterly publication dedicated to discussing current criteria, innovative deal structures, marketshare and industry trends in the residential mortgage, home equity, manufactured housing Manufactured housing (also known as prefab housing) is a type of housing unit that is largely assembled in factories and then transported to sites of use. In the United States, the term "manufactured home" specifically refers to a house built entirely in a protected and mortgage servicer industries. To view or download a copy of 'RMBS Mortgage Principles and Interest', log on to the Fitch web site (located at 'www.fitchratings.com'), choose 'RMBS' under the 'Sectors' heading and then select 'Newsletters'. For a full copy of the report, please contact Market Services at 1-800-853-4824. |
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