The foreclosure crisis has brought the issue of buybacks to the forefront of discussions once again. Jaded investors are looking to get some compensation from the mortgage market fiasco that has seen RMBS delinquency rates soar.
"In the past few weeks, 'robo-signing' has rapidly snowballed into broader questions about the entire foreclosure process," said securitization analysts at JPMorgan Securities in a conference call last month. "In the extreme, some market pundits have even suggested that securitizations were fundamentally flawed, and that loans were not assigned properly to securitization trusts. Unfortunately, many of the news reports have not been accurate and confuse the issues and potential outcomes for the market."