Moody's Investors Service released new indexes for Jumbo collateral. The aim of these indexes is to better assess the state as well as trends in the sector's credit quality. This set of indexes will allow the rating agency to track the delinquency, loss and prepayment performance of jumbo mortgage pools. Moody's Jumbo Mortgage Indexes use performance data from over 1,600 jumbo mortgage pools securitized since January 2001.
Although the rating agency expects Jumbo performance to remain comparatively strong, several factors that are on the horizon could potentially cause the performance of these mortgage pools to weaken versus historical averages. Whereas in the past, falling interest rates, home price appreciation and high levels of refinancing have resulted in considerably strong performance.