Structures
RMBS
Also known as: residential mortgage-backed securities, residential MBS
status: draft
Residential mortgage-backed securities. Securities backed by pools of residential mortgages, either agency (Fannie, Freddie, Ginnie) or non-agency (private-label). Performance depends on borrower credit, property values, and prepayment behavior.
What to watch
Non-agency RMBS requires close attention to loan-level data: FICO distributions, LTV ratios, documentation types, and geographic concentration. Post-2008 vintage collateral generally has tighter underwriting. Prepayment modeling is essential because faster prepayments shorten duration and reduce yield for premium bonds.
Referenced in 50 topics
Advance rates and the borrowing base mechanics Agency RMBS asset-classes Basel III/IV capital treatment regulatory Bridge / fix-and-flip asset-classes Calculation agents and data agents counterparties Captive insurance companies capital-sources Cash flow modeling accounting-valuation Collateralized loan obligations (CLOs) structures Deal structures asset-classes Diligence guide asset-classes DSCR investor loans asset-classes Fair value hierarchy accounting-valuation Finding service providers market-landscape Home equity and helocs asset-classes Industry infrastructure market-landscape Insurance ALM constraints capital-sources Insurance capital capital-sources Investment Company Act exemptions legal Key participants asset-classes Legal opinions and third-party reports documentation Mark-to-model practices accounting-valuation Market data and public datasets market-landscape Market intelligence market-landscape Marketplace lending and fintech-originated asset-classes NAIC designations and regulatory framework capital-sources NAV and liquidity considerations accounting-valuation Non-agency RMBS / non-QM / investor-purpose asset-classes Non-performing loans (NPL) asset-classes Non-QM lending asset-classes Other counterparties counterparties Pricing and relative value accounting-valuation Prime jumbo asset-classes Rated note feeders structures Rating agencies counterparties Rating agency engagement for funds playbooks Re-performing loans (RPL) asset-classes Risk retention rules legal Secondary market and liquidity market-landscape Selecting and working with trustees playbooks Servicer responsibilities counterparties Servicer selection asset-classes Significant risk transfer (SRT) structures Single-family rental (SFR) asset-classes SPVs and bankruptcy remoteness legal Tax classifications explained legal Term securitization (ABS/MBS) structures Trustees counterparties US entity types for ABF legal Volcker Rule implications legal Whole loan sales structures