Standard & Poor's predicts a sharp increase in the use of whole loan sale technology in Europe, offering mortgage originators a meaningful financing alternative to retail deposits or the costs of small-scale securitizations.
Whole loan sales drive the US residential mortgage-backed securitization origination process and Europe's fast-maturing mortgage sector has reached a level of sophistication and liquidity where the same technology can be deployed.
In the US, whole loan pool sales of $1 billion are a regular event, and can rise as high as $3 billion.
Mortgage originators in Europe, especially the UK, have now begun to pursue whole loan sales. The vendors are typically non-conforming originators who...
