Financial Guarantees
Asset-Backed FinanceResidential Mortgage Finance
Residential Mortgage Finance
FSA guarantees a broad range of securities backed by first- or second-lien residential mortgage loan collateral, including:
- prime
- Alt-A
- subprime
- negative amortization
- closed-end seconds
- home equity lines of credit (HELOCs)
- net interest margin
We have remained active in the mortgage-backed securities (MBS) market through more than twenty years of market cycles. Throughout this time, we have maintained consistently high underwriting standards, allowing the volume and mix of our business to reflect the best available opportunities in each set of market conditions. Because of this record of informed and disciplined underwriting, we are well positioned to help our clients achieve the strongest possible executions, even in markets with limited liquidity.
For transactions that qualify, the FSA guaranty can mean broader market acceptance and reduced retention levels for the issuer. Working with issuers and their advisors, we help develop guaranteed structures that deliver optimal economic results. Our clients include some of the largest mortgage originators, but we also assist new entrants in the process of building their platforms. Our guaranty is available in both primary and secondary markets in the United States and other countries.
Synthetic Transactions
Combining our credit underwriting skills, structuring knowledge and credit default swap expertise, we assist in developing synthetic risk transfer programs and attracting appropriate counterparties. Banks in several European countries have achieved more efficient use of capital through FSA-guaranteed credit default swaps referencing portfolios of German, Dutch, Italian and U.K. mortgage loans.