KBRA Releases RMBS ESG Research: Bridging the Minority Homeownership Gap: Credit Perspectives on Down Payment Assistance Programs
Kroll Bond Rating Agency (KBRA) releases research which further discusses homeownership as one of the key social factors in environmental, social, and governance (ESG) considerations related to RMBS, in particular as it pertains to wealth accumulation and other societal benefits. This report examines the growing gap in homeownership rates between minority and white Americans, while addressing the potential credit risk implications of the proposed down payment assistance grant policies and the impacts on home equity leverage levels. Our analysis focuses on the below areas:
- Consideration of a range of property values and loan amounts typical of areas targeted for homeownership support.
- Potential variations in expected grant support including full, partial and no grant support levels.
- Associated default and loss expectations using KBRA's RMBS Residential Mortgage Default and Loss Model.
Click here to view the report.
Related Publications
- Environmental, Social and Governance (ESG) Considerations by Sector: RMBS
- Hurricane Laura: Potential RMBS Exposure
- RMBS Trend Watch: What Lies Ahead for the Remainder of 2020
About KBRA and KBRA Europe
KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) with the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe is registered with ESMA as a CRA. Kroll Bond Rating Agency Europe is located at 6-8 College Green, Dublin 2, Ireland.
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