NEW YORK–(BUSINESS WIRE)–#creditratingagency–Rising mortgage rates and continued home price appreciation over the past 24 months has led to a slowdown in housing turnover and refinancing activity, pushing mortgage prepayment speeds to historically low levels. Solar loan prepayment rates have fallen in tandem, as home sales and cash-out refis have historically been two of the main solar prepay drivers. For securitized asset classes with positive excess spread, a slowdown in prepayment speeds can have positive credit implications as it increases soft credit enhancement. However, for solar loan ABS transactions, which typically have negative excess spread, low prepayment rates erode credit enhancement.
Click here to view the report.
About KBRA
KBRA is a full-service credit rating agency registered in the U.S., the EU, and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.
Doc ID: 1003602
Contacts
Brian Ford, Head of Structured Finance Research
+1 646-731-2329
Kaci Emrich, Analyst
+1 646-731-1216
Brajean Ramos, Senior Analyst
+1 646-731-2417
Business Development Contact
Rosemary Kelley, Senior Managing Director, Head of Structured Finance and Project Finance
+1 646-731-2337
