RMBS - US: Increased Equity Borrowing Is Reducing Benefits of Home Price Appreciation
STRUCTURED FINANCE SECTOR IN-DEPTH 28 February 2017 TABLE OF CONTENTS Summary 1 Equity borrowing is increasing along with rising home prices, a negative for RMBS 2 Cash-out refis are increasingly prevalent in RMBS transactions 2 Strong credit characteristics can offset cash-out refis' higher risks 3 Cash-out refis have often underperformed other loan types 5 Home equity loans can add risks to
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