Even though third-party due diligence has always been performed on whole loans, the providers of these services have more skin-in-the-game now that rating agencies have very stringent requirements.

“The certification process that we undergo now and the minimum standard of review didn’t really exist before,” said Charlie Cacici, a managing member at RMG, which is a company that provides third-party RMBS due diligence services.  “This is a way of luring back investors to RMBS transactions.”

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.