libertasdon

Watch Out! Falling Mortgage-Backed Securities Ahead

Here is a quote from a mortgage company that is bucking the trend so far:

Luminent's credit quality is strong. 92% of Luminent's assets are rated A or higher or have been securitized into mortgage-backed securities rated A or higher. 65% of Luminent's assets are first lien, prime quality mortgages. Overall, the average FICO score is 713 and down payments are strong, with an average loan-to-value ratio, net of mortgage insurance, of 72.6%. 25% of Luminent's assets consist of AAA or agency-backed mortgage-backed securities. 9% of Luminent's assets consist of other mortgage-backed securities with an average credit rating of BBB+.

I have a small stake in Luminent and wonder if this isn't the way to go generally with mortgage reits, not only in tight times.