For loans with LTVs over 105 percent, what product execution options are available?
Because Refi Plus and DU Refi Plus loans with LTV ratios above 105 percent are not permitted to be included in TBA-eligible pools, we created a new non-TBA MBS pool prefix specifically for these loans. In addition, to align our whole loan execution to what we are doing on the MBS side, we created one new whole loan product for these over-105 percent LTV loans. To drive a quick ramp-up of market liquidity for these loans, we wanted to avoid the fragmentation that would occur if we offered a broad array of product options, so we deliberately limited our offering only to fully amortizing fixed-rate mortgages with terms greater than 15 years up to 30 years. For MBS, all production will be pooled using the one the prefix, CQ. For whole loans, all production will be accommodated under one product in eCommittingTM and eCommitONETM called “30-Year Fixed Rate, Refi Plus LTV 105.01 thru 125.” In contrast to our standard TBA- eligible FRM offerings, we will not offer separate MBS or whole loan ex
