There is a lot of talk about today’s improved loan quality and loans on the secondary market today are better, but recent events have clearly highlighted the need for better vetting when it comes to processing on the servicing side, and not to be overlooked as this occurs is that there is still a lot to look out for on the origination side, too.

“Everybody is going for the highest quality,” according to Sue Allon, CEO of due diligence firm Allonhill said, noting that her firm has been busy with seasoned loans as well as new Federal Housing Administration/Veterans Affairs  and Jumbo product. “Sequoia set a high bar,” said Allon, referencing the first post-downturn private-label jumbo securitization that has, by and large, proved to be a tough act to follow.

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